The NSW government is set to ditch regional council mergers that are being challenged in court but proceed with amalgamations in Sydney.
The decision by Premier Gladys Berejiklian means 20 already-amalgamated councils across NSW will remain in place.
Five Sydney mergers being legally challenged will go ahead if their court battles are unsuccessful.
The move has infuriated anti-merger opponents and led to accusations the new premier is bowing down to her National party colleagues who pushed for all 12 mergers in the regions to be scrapped.
But Ms Berejiklian, in defending the policy change, said she had been wrong to think a "one size fits all" approach would work for councils in the city and the bush.
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