Among its recommendations are amalgamations of many district councils, the creation of a mega Riverina joint organisation (JO) and the amalagamation of Riverina and Goldenfields county councils under the umbrella of the Riverina JO.

Despite the state government's stance to date of no forced mergers of councils, the panel, headed by Graham Sansom, says sooner or later amalgamations will have to be "part of the package".

It also says rate pegging should be reviewed in the context of a wider effort to address infrastructure backlogs and to ensure financial sustainability.

Included in the report are the following amalgamation options:

– Wagga with Lockhart;

– Coolamon with Bland;

– Junee a council in the Riverina JO or merge with Cootamundra;

– Gundagai merge with Tumut or rural council in a Riverina County Council;

– Temora council in Riverina JO or merge with Coolamon and/or Bland

– Narrandera council in a Murrumbidgee JO or merge with Leeton;

– Griffith council in the Murrumbidgee JO or merge with Murrumbidgee.

The panel says local government in NSW needs a new agenda and a fresh start.

"For far too long local government has been bogged down in debates about amalgamations, rate pegging, cost shifting and demands for additional state and federal funding," the report says.

"Meanwhile, the financial sustainability of many councils – and their capacity to deliver the services communities need – has declined, and a significant number are near crisis point."

In his letter to the Minister for Local Government, Don Page, accompanying the report, Mr Sansom says the panel has made 65 unanimous recommendations.

"We are of one mind concluding that wide-ranging and concerted action is essential to make NSW local government sustainable and fit-for-purpose into the mid 21st Century," Mr Sansom says.