Leeton is one of 86 local councils in NSW to have their applications approved by the Independent Pricing and Regulatory Tribunal (IPART).

These councils will now have their rates increased between 1.6 per cent and 2.5 per cent, which includes the original 0.7 per cent rate peg.

Leeton mayor Tony Reneker said the council agreed to apply for IPART's additional special variation process at the April 2022 ordinary meeting.

He also said the 1.8 per cent rate increase was necessary amid ongoing inflation.

"Wages go up two and a half per cent and we're only getting a 0.7 per cent increase. That's crazy," Cr Reneker said.

"Our expenditure is more than our income, and like any budget you can't be spending more than you get in."

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Cr Reneker said increased rates were important for overall sustainability.

"It's not about getting more money and buying more with it," he said. "It's about being sustainable for the future so we don't have a problem in five or ten years time."

Other approved councils included Griffith City Council, Narrandera Shire Council and Wagga Wagga City Council.

IPART tribunal member Deborah Cope said many councils were unhappy with this year's 0.7 per cent peg rate, particularly during widespread economic downturns.

"Some councils demonstrated that without additional funds they will not be able to deliver the projects they have already consulted on and included in their budgets," she said.

"We were careful to balance the need of councils to maintain the services and investment they had already committed to against the need to keep rates affordable for the community."

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