Cr Bill McAnally said it was important that "no fourth tier of government" emerged as a result of reforms to the sector that provides roads, rubbish and other services. He was speaking after an announcement about the five regional groups of councils chosen to pilot "Joint Organisations" (JOs), mooted as an alternative to amalgamations of councils.

Central West, Hunter, Illawarra, Namoi and Riverina were chosen, NSW local government minister Paul Toole said this week as he continued with the Fit For the Future reform of local government.

"Establishing these new regional structures will make it easier to manage important projects, to better deliver the jobs, education, housing, roads, bridges, sports grounds, libraries and other facilities and services that regional and rural communities need," he said.

An application from the Orana Regional Organisation of Councils (OROC), to which Dubbo City Council belongs, was not successful.

Cr McAnally, OROC chairman and Narromine mayor, said yesterday he was disappointed but he vowed to "take it on the chin and keep going".

He said he thought OROC had a strong submission and that with the "uniqueness" of the 12-member group and its "vast and productive" area it had stood a good chance.

Cr McAnally said he had not read any of the other area's applications and had put in a phone call to Mr Toole to find out how the decision was made.

"The Hunter and the Illawarra, they're nearly Sydney," he said.

"We don't want JOs to become empire building."

He said OROC would have its eye on the pilots and wanted to have input into JOs - "what they do and their powers".

"I really hope they don't become a fourth tier - that's all we need in local government," he said.

"It's hard enough now for councils to toe the line with legislation."

Cr McAnally was particularly concerned about any JO board that may be set up and that they did not give larger councils more votes.

"But that's to be seen and hopefully on boards everyone will get a say and a fair share of what we do," he said.

Dubbo mayor Mathew Dickerson said it would have been good to be selected to pilot a JO but agreed OROC would continue doing what it had been doing. "It's disappointing to miss out but it will not stop OROC in its tracks," he said. "We'll continue to look at ways to achieve efficiencies and sustainability by working together."