Local councils from around NSW invested in ABN Amro and Local Government Financial Services after being advised by ratings agency Standard and Poor before the Global Financial Crisis (GFC) .

The councils made this decision based on a degree of credit-worthiness and ability to meet financial commitments (a AAA rating) from Standard and Poor.

ABN Amro and Local Government Financial Services were greatly affected by the GFC causing various councils to lose different investments.

In 2012, Justice Jayne Jagot declared the councils were misguided about the security of the investment, which was promoted as a tailor-made product for councils, but the decision was appealed by Standard and Poor's, ABN Amro and LGFS.

At the beginning of June the Federal Court upheld its earlier ruling, making the company liable for the losses of the councils.

Narromine Shire Mayor Bill McAnally said the legal system went the way of the people who needed it most.

"It wasn't something we expected to hear, but I'm grateful we got some of our money back," he said.

In the initial ruling by Justice Jagot, Narromine was set to receive $466,612 in compensation, not including interest, but Cr McAnally said Narromine's share in the current legal decision was stillnot known and would be announced when final figures become known.

Bathurst Council is set to receive all of the $1 million it originally invested.