NSW Premier Mike Baird announced the Fit for the Future package on Wednesday which included no forced amalgamations but financial incentives for smaller councils to amalgamate.

Newly-reinstated Narromine Mayor Bill McAnally is pleased with this result as he has been against amalgamation since the discussions began.

While Cr McAnally said council had to consider the $13 million incentive to amalgamate, he believed Narromine Shire was strong enough to stand on its own two feet.

"I'm still against amalgamation," he said.

"It's going to be a challenging time in local government, we stay strong as council and we're in a strong finacial position.

"We've got runs on the board to stand alone."

Mr Baird announced he was committed to "Rebuilding NSW" and making the local government sector stronger.

"This is not possible when more than one-third of the State's councils are facing financial problems-losing more than $1 million a day," he said.

"This package puts ratepayers first. We want communities to have confidence that their council is financially sound, operating efficiently and in a strong position to guide the community growth and deliver quality services."

Mr Baird has allocated $258 million to assist councils who decide to merge and make the changes needed to provide better services to the communities.

Cr McAnally is keen to see amalgamations in Sydney go ahead before those in Western NSW.

"Western NSW is a vast area with a low population, we still have to maintain our roads (etc.). Start (the amalgamations) in Sydney," he said.

Other aspects of the Fit for the Future Package include cheaper finance for councils to build and maintain the facilities that communities need, up to $100 million savings through reductions in red tape and duplication and improvements to the local government system, including the laws that govern it, the way the state works with councils and the support councils receive.

The Fit for the Future package is based on the Independent Local Government Review Panel's recommendations following three years of research and consultation.

We'd like to know your thoughts, let us know by commenting below or emailing grace.ryan@fairfaxmedia.com.au