The unusual situation arose when Mr Gardoll was informed that his brother-in-law Tony Jones had buried a dog in his parents' grave at Wellington cemetery.

Mr Gardoll's sister Debbie Jones admitted to the Daily Liberal that her husband had buried the dog in the grave but insisted she was within her rights.

"I'm the executor of the will," she said.

"I paid for the funeral and the burial plot.

"As far as I'm concerned it's my land and I have the right to bury the dog there."

Mr Gardoll refuted his sister's claim saying an older brother and sister were executors of their parents' will and their father paid for the burial himself.

"But that's not the point, what they have done is legally and morally wrong," Mr Gardoll said.

Mrs Jones said she'd had the dog, a chihuahua named Kia, for 13 years and it was like family to her.

She said she buried it at the cemetery because she had other dogs at her house and was afraid they would dig it up if she buried it at home.

"We've been thinking of moving from Wellington and I wanted a safe place for Kia so that I could visit her whenever I returned," Mrs Jones said.

A police investigation by officers from Dubbo and Wellington has been put on hold as they await advice from Macquarie Area Health Service (MAHS).

A MAHS spokesman confirmed an investigation was under way but could not say when its report would be finalised.

"We have an officer from our environmental health unit investigating the matter to determine if the burial of the dog had interfered with the human remains in the grave," the MAHS spokesman said.

Dubbo police inspector Matt Goodwin said it was an unusual incident but was unsure if a criminal act had been committed.

He said investigations were being conducted, however the matter fell under the jurisdiction of NSW Health and action to remove the dog could not be taken until the department presented its findings.

Angry that action wasn't being taken at once to have the dog removed, Mr Gardoll sought advice from the NSW police commissioner's office and Wellington Council.

"All the advice I've received says it's illegal to tamper with a grave and to bury animals in a public cemetery," Mr Gardoll told the Daily Liberal.

"I couldn't believe it when my brother Raymond came and told me on Sunday afternoon that Tony had buried their dog in Mum and Dad's grave.

"Ray was at the cemetery fixing up another family grave when Tony came up and told him 'not to worry' about the grass being disturbed on Mum and Dad's grave because he'd just buried the dog there."

As well as burying the dead dog, Mr Jones is said to have placed a small cross and flowers on top of the grave.

Mr Gardoll is angry at the State bureaucracy, which he says is preventing him from having the dog removed.

"The police say they can't do anything, the council says its hands are tied while we have to wait for the health department to make a decision," he said.

"It's ridiculous.

"I've been told I could be charged for tampering with a grave if I try to remove it myself and the council said it would cost me $1500 if I was to get them to do it.

"But they can't do it anyway because it's a police matter.

"It's just not good enough.

"I haven't been able to sleep knowing there is a dog lying on top of my parents."

Wellington Council refused to comment on the matter yesterday as it was under police investigation.

The MAHS spokesman said he expected a report from its environmental health unit soon.