Labor will this week introduce new laws to stop developers and real estate agents being elected to all NSW councils at the forthcoming elections in September.

Wagga councillor Rod Kendall said the idea will set a "dangerous precedent" that allows others to decide who is worthy for office.

Cr Kendall, who is a property investor, said he questioned where the line would be drawn once political parties start eliminating people from the list of eligible candidates.

"At the end of the day the community decides who they are happy to have represent them and that is the idea of democracy," he said.

Cr Kendall said the groups targeted by this proposed legislation are "great contributors" to local government, who could use simple measures to declare any conflict of interests.

"There are lots of things that property developers will understand about their city that can be a great contribution to debate," he said.

Cootamundra-Gundagai mayor Abb McAlister said this blanket approach could do more harm than good for rural and regional councils.

However, he understands that personal agendas had caused problems in metropolitan Sydney and those with a larger population.

There have been numerous corruption scandals across the state of NSW.

"If Labor wanted to do it in the city, they certainly can do that, but not in the country," Cr McAlister said.

Cr McAlister said his community has many people "heavily involved in the community" who happened to work as real estate agents.

He said a potential councillor's career should not get in the way of electing the right person for the council.

"In the bush you are there for the community and people will work out if you aren't," he said.

Wagga councillor Kerry Pascoe said he did not believe corruption was a problem in rural and regional councils, however it was an issue that resonates for mostly metropolitan areas.

As a property developer serving on council, Cr Pascoe said it is important that elected representatives were open and transparent concerning their interests which councillors were able to declare at each meeting.

"I have left the council chamber many times when I have a conflict of interest. I take it seriously," he said.

The proposal drafted by the opposition's spokesman for local government Greg Warren will be introduced into the state's legislative council by MLC Walt Secord.

"It's been Labor's policy for years to ban property developers and real estate agents from being elected to NSW councils," Mr Warren said.

It is Labor's second attempt in three years to push for this ban.

"Communities expect the highest level of accountability and integrity from their councillors and mayors," Mr Secord said.

"This is the government's chance to put up or shut up when it comes to ensuring transparency and community trust in local government."