"I have had a number of representations and discussions with individuals and key stakeholders in the shire who have indicated that action should be taken about the performance of the council," Mr Smith said.

"The member for Goulburn, Wendy Tuckerman, and I have recently written to the Minister expressing our concerns about the council and its conduct."

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Ms Hancock said that she had heard loud and clear the concerns of residents and local MPs Nathaniel Smith and Wendy Tuckerman about the ongoing infighting and its impact on council meetings, decision making and community confidence.

"I would rather council be representing the community first and concentrating on growing the area in the area of infrastructure development," said Mr Smith.

"There are many projects and developments which are being held up because of the failure of council to address these matters.

"Both Wendy and I want to see an end to the political infighting and bickering taking place at council meetings."

Mr Smith said that the proposed PIO seeks to address long-term division and conflict among councillors and the associated reputational and work, health and safety risks.

The PIO would focus on councillor training, the conduct of council meetings and mediation to strengthen relationships between elected representatives and prevent dysfunction.

The Minister's proposal is to appoint two temporary advisers to conduct the mediation process to address hostility and acrimony among councillors and provide advice and support to the Mayor to ensure the orderly conduct of council meetings.

"The NSW Government is committed to ensuring the local community has a council that is serving its best interests," said Mr Smith.

"Both Wendy and I are hoping there will be a positive outcome in this matter and the community will be the winners in this regard."