Chairman of the Independent Pricing and Regulatory Tribunal (IPART) Dr Peter Boxall said there had been no advice from the state government about council mergers.

"Our job is to deem councils either fit or not fit," he said.

"We have no riding instructions from the state government on mergers or a target amount of councils."

Narromine Shire Council is against the proposal of amalagamating with Dubbo and Wellington.

To ensure the council will remain "stand-alone" rates will increase an extra 3.5 per cent next financial year and another 3.5 per cent the following financial year on top of the rate peg.

The council has also allocated $30,000 for a consultant to advise them on how to be "stand alone''.

Dr Boxall was in Dubbo recently to chair a forum attended by councils and the community from many areas including Narromine, Blayney, Walgett and Temora.

He said councils faced with mergers would have to sell their case.

The chairman wanted to listen to community views about IPART's Methodology for Assessment of Council Fit for the Future Proposals Consultation Paper.

"We want the process to be transparent so councils are aware what they need to do and can consult with their communities accordingly," Dr Boxall said, adding it was up to each council to determine the best way forward to address their specific needs and challenges.

The chairman said the recommendations of IPART's report would be handed to the state government.

"The state government will decide on what councils are fit or not. It's a political decision then," he said.

Local Government NSW president Keith Rhoades said the state government was showing its true colours.

He said the local government minister would not support a motion opposing amalgamation of councils.

That admission came during a debate on a motion by Independent Sydney MP Alex Greenwich who said the House opposed the amalgamation of councils that were financially sustainable and had the support of their communities.

"That debate was crunch time, and the Minister for Local Government Paul Toole stood on the floor of the Parliament and stated unequivocally that the government would not support a motion opposing the forced amalgamation of councils," Cr Rhoades said. "It really does suggest that the whole Fit for the Future process is simply tick-a-box, with the government firmly committed to diluting local democratic representation for purely ideological reasons."

MP Alex Greenwich described the Fit for the Future program as "a farce, so the government can claim it consulted and assessed".

Cr Rhoades said it was instructive to see the arguments trotted out against the motion, which included claims that amalgamations would "drive down rates", that "bigger is better", and that forced amalgamation was "a dead-set non-issue" for our communities.

"I can assure the community and the government this is not the case: Local Government welcomes reform that genuinely improves outcomes for residents and ratepayers," he said.

"What the sector does not support is amalgamations being forced on councils who are able to show they are financially sustainable, and whose communities have stated clearly that they wish to continue to have grass roots representation via stand-alone councils."