The NSW government will have to consider prohibiting developers from councillor positions, after a Greens-Labor push got the relevant legislative amendments through the state's upper house last week.

Dr McGirr said he would consider the issue over the Parliament's winter recess before the amendments are voted on in the lower house ahead of the September NSW local government elections.

"I am concerned that it would ban an entire group of businesspeople from being able to serve in local government. This issue is entirely separate from banning donations from property developers," he said.

"The real issue is making sure we have transparency and disclosure and manage conflicts of interest."

Wagga councillor Dan Hayes, who represents Labor, said he thought Dr McGirr should "seriously consider his vote on this one".

Cr Hayes believes banning property developers from running for council positions is "the next logical step", because they are already prohibited from sitting on regional planning panels - bodies which oversee the approval of major projects.

"There's an inherent conflict of interest in so many aspects of being a councillor that links with being a property developer," he said.

"People need to have confidence in the decisions made on council. Whatever good they bring I think there is that inherent conflict of interest that muddies the water far too much."

IN OTHER NEWS:

Councillors are legally required to declare whether they have any conflicts of interest in matters being discussed and voted on at council meetings.

Where there is a pecuniary or otherwise significant conflict of interest, councillors are required to vacate the chamber and are not allowed to vote on the particular matter.

Two of Wagga's councillors, Kerry Pascoe and Rod Kendall, have significant interests in property within the local government area.

Cr Kendall reiterated his earlier comments that he is a property investor, not a property developer, but said he wouldn't support the ban.

"I don't believe any person should be discriminated against because of their role or their job, that's my opinion, whether they're a developer or a taxi driver," he said.

Cr Kendall said he had chosen not to be reappointed to the Southern Regional Planning Panel to avoid potential conflicts of interest.

Councillors in March voted to to amend the local environment plan to allow increasing the height of a building that Cr Kendall co-owns at 63-65 Johnston Street, next to the Woolworths car park, as part of a plan to turn it into serviced apartments.

Councillor Rod Kendall declared a pecuniary interest and vacated the council chamber while debate took place, as did Councillor Kerry Pascoe, who is planning a similar amendment on one of his own properties in the near future.

Fiona Ziff, a long-time critic of Cr Kendall's who plans to run for council herself this year, said she didn't think the current safeguards were strong enough.

"[Developers on councils] are privy to really sensitive information and they can do what they want with it," she said.

"The question is why are they there?"