The AFL has officially confirmed the cuts to Greater Western Sydney's academy zone.
The changes had been flagged last week by Fairfax Media following a push from rival clubs to strip the Giants of what they perceived to be an unfair advantage.
A statement released by the AFL said the Giants would be restricted to Next Generation Academy talent in the Albury/Murray region.
The league will also restrict the number of top 20 players who can be drafted as academy selections by finalists.
Top-four teams will be limited to just one matched bid in the top 20 of a draft, with clubs finishing fifth to eight allowed two such players.
"The Albury/Murray region covers Albury and NSW towns along the Murray River to the South Australian border,” the AFL said.
"The amendment was recommended following a review of the Giants' club academy zones, and the wider rules regarding player access from club academies.”
The changes are effective immediately.