Dubbo Regional Council is following the NSW government's protocol for dealing with homeless people in public places.

The protocol states homeless people should not be asked to move on "unless there is a threat to general security or safety" or "they are causing a disturbance which constitutes a breach of peace".

The council's director of community, culture and places Craig Arms said the organisation was limited in its response to a homeless camp along the river.

"We're looking to build a relationship with those homeless people down there and to offer them alternatives and options other than where they are now," Mr Arms said.

However he said the situation was complicated because there were "reports of aggressive behaviour" and the location of the camp was prominent.

According to peak body Homelessness NSW, 1488 people in the Dubbo area received assistance from homelessness services in the 2022-23 financial year.

It was an increase of 81 compared to 1569 in 2021-22.

The Dubbo local government area is ranked as 11^th in NSW for the number of people who required assistance from specialist homelessness services. However, it was the third highest outside the greater Sydney area.

Mr Arms said homelessness was a "growing problem" and one a lot of local governments were experiencing.

Dubbo council is currently working with the NSW government and homeless organisations in relation to the people living in the camp.

Councillor Matt Wright said he hoped the community could understand the challenges facing the council when it came to dealing with people sleeping rough.

"It's not just a matter of turning up with a big-handed approach or a heavy stick and asking people to move. It is quite complex," he said.