Gilgandra Shire mayor Doug Batten says commercial caravan parks could lose hundreds of thousands of dollars if the council were to introduce free camping.
In an interview with ABC News, Mr Batten said there is no consistency when it comes to regulation around free camping sites.
“I know communities have done some wonderful things, I know in Eumungerie their camping ground there, there is a donation for staying there, that has provided a wonderful bonus for Eumungerie and there is no caravan park there and no real commercial problem” he said.
“But when you come to Gilgandra with 4 caravan parks being on a major intersection on the Newell Highway it is a real economic concern.”
Mr Batten said that while the shire was looking to increase visitor numbers, it should not do so in a way that adversely affects local businesses in the process.