The amalgamations were announced this morning by New South Wales Premier Mike Baird , following the release of the Independent Pricing and Regulatory Tribunal (IPART)'s 'Fit for the Future' report.

The three way merger was the preferred option put forward to the minister by the Independent Local Government Review Panel and was supported by Young Shire Council at an extraordinary meeting in November.

It has previously been opposed by Harden Shire Council who have made no secret of their preference to align themselves with Cootamundra.

Young Shire Council's second preference for a merger between Young, Boorowa, Cootamundra and Harden was also mooted, but today’s announcement places Cootamundra with Gundagai.

Gundagai Council, which had been deemed unfit, had resolutely opposed any amalgamation proposal.

On the other hand it appears, Weddin Shire Council, also deemed unfit, also opposed any proposed amalgamations with Forbes or Cowra Shire Councils, has been given a reprieve and will stand alone.

General manager Glenn Carroll said they were thrilled with the decision.

So opposed to any amalgamation were the townspeople 500 turned up for a public meeting during the recent 30 day consultation period.

“Obviously we need to change to remain fit and, while we need more detail on the Rural Council model, we need to look at how we can work in with other councils in terms of sharing resources and reducing council numbers,” he said.

While it has been business as usual for Weddin Shire Council during the amalgamation discussions over the past 12 months, Mr Carroll said a lot of time and resources had gone into that process.

“Now we can focus on other things like building a new pool and a new medical centre in the town,” he said.

Premier Baird also announced the creation of a new Local Government Act that will include a new power for the minister to appoint a financial controller to a non-performing council deemed at high financial risk.

But the amalgamations will be dealt with through the old act, which means there will need to be public hearings by the Boundaries Commission, which will be re-constituted.

The process will take at least six months, which may affect local government elections due in September.

March 2017 is the newly proposed date for the elections.

The government also announced a $700 million package, up from the original $550 million, in incentives to help councils absorb the costs of merging.

Local Government Minister Paul Toole sought to portray the mergers as only one part of a package of local government reforms.

"It's time for a new era of local government," he said.

"Local government reform is not just about proposed mergers, it's about making wider changes to the system to strengthen and improve the ability of councils to deliver the services and infrastructure the community deserves," he said.

In parallel with these reforms would be a review of the rating system to be undertaken by the Independent Pricing and Regulatory Tribunal (IPART).

"The NSW government has asked IPART to consider potential improvements to the rating system, including how it works for apartments and other multi-unit dwellings.

"Importantly, IPART will also look at councils proposed for merger and the capacity of a new council to establish an equitable system of rating, and the transition to that in a fair and timely manner."

Some councils slated for merger have wildly different rates systems which will need to be harmonised.

The minister said already-approved rates in areas proposed for amalgamation will stand for the next four years.

Detailed information on the proposed boundary changes can be found at http://lgnsw.org.au//files/imce-uploads/127/map.pdf