The Independent Pricing and Regulatory Tribunal's (IPART) approval of special rate variation applications for less than two dozen metropolitan, regional and rural councils in the state has given Bathurst-based local government minister Paul Toole another chance to promote reforms that involve proposed mergers.

Mr Toole issued a statement within hours of IPART's announcement on Tuesday that it had fully approved 21 applications and partially approved one application.

He expressed concern that "so many councils" in both Sydney and regional NSW were struggling financially.

"Councils have told IPART that without significant rate increases they would not be able to provide essential services and reduce their infrastructure backlogs," he said.

"In the last two years alone, one third of the state's councils have asked ratepayers to pay more.

"Councils are advising IPART these rate rises are to repair infrastructure and that they would be financially unsustainable without them. This is not viable in the long-term."

Mr Toole went on to tell of the government "working in partnership" with councils on Fit for the Future reforms and the need to give "mums and dads" a break.

"The Fit for the Future reform process aims to ensure councils are able to deliver more infrastructure, better services and put downward pressure on rates," he said.

"We're trying to strengthen the local government sector so we have a better system of local government and to ensure mums and dads and families don't continually have to pay more for basic services.

"The community deserves every council in NSW to be looking at its financial sustainability, scale and capacity and asking how we can deliver a stronger, smarter local government sector for NSW."

The councils granted special rate variations are Ashfield, Ballina, Blue Mountains, Coffs Harbour, Deniliquin, Eurobodalla, Gloucester, Greater Hume, Gwydir, Jerilderie, Kyogle, Marrickville, Mosman, Narromine, Newcastle, Oberon, City of Ryde, Shoalhaven, Wakool, Weddin, Willoughby and Wollondilly.

Narromine has permission to lift the rate peg of 2.4 per to 5.9 per cent, requiring the average resident to pay an extra $35, businesses $88 and farmers $210 in 2015/2016.

IPART is allowing the council to implement consecutive increases of 5.9 per cent in 2015/2016 and 6.9 per cent in 2016/2017 including the rate peg, to be retained permanently in its rate base.

The extra cash will be used to repair roads, meet loan repayments and improve the council's financial position.

In approving Narromine's application, IPART acknowledged the council had asked for a smaller rate increase in response to community concerns and adopted a hardship policy to help cash-strapped ratepayers.

Mayor Bill McAnally said the increase in income would help the council be Fit for the Future.