Local Government NSW conference delegates on Tuesday endorsed a motion put by the Corowa-based shire that a new category of council be formed to increase the remuneration threshold.

Federation is now classed as a rural council which means fees for councillors vary from $9190 to $12,160 with the mayor able to earn $9780 to $26,530 in addition.

The shire's 2019-20 pay for councillors and the mayor is the maximum in each category.

Mayor Pat Bourke wants Federation representatives to be able to reach the maximums in the regional rural category, $20,280 (councillors) and $44,250 (mayors).

"Our council area is about 6500 square kilometres and the workload has been massive, particularly with the merger (between Corowa and Urana councils)," Cr Bourke said.

"We're the most underpaid in the state but we have the same work, same courses and same code of conduct as other councils."

The NSW Local Government Remuneration Tribunal rejected a bid by Federation to be moved to regional rural because its citizen tally of 12,462 was "well below" the population benchmark for the category.

Cr Bourke said that view failed to recognise NSW was trailling other states for rural councillors pay.

He pointed to Victoria's Indigo Shire, which neighbours Federation, which can pay councillors $20,636 and its mayor $61,651.

Cr Bourke believes the rural NSW pay scales, which also apply to Berrigan, Greater Hume and Snowy Valleys, are a deterrent to would-be Federation councillors.

"It would definitely have to be a limiting factor because for young people with families and all the costs of living it would not be enticing," he said.

"Even when you're a business person it keeps you away from business and you've got to have staff on to take your place."

The remuneration issue was one of 10 motions that Federation put to the conference being held at Warwick Farm in south-west Sydney.

Federation also won support for pushing the state government on reimbursement of the waste levy, a more strategic approach to large solar farm approvals and extra funding for joint organisations of councils.

A call for the government to make its crown land review process more efficient also secured backing.

Cr Bourke said his council had been concerned the system around the transferring of crown land to freehold was hampering development.

He cited delays with plans to develop land around Lake Urana and to remake railway corridors into trails for bikes and walkers.