Council merger 'dog's breakfast' continues

The Berejiklian government's bid to forcibly merge three eastern Sydney councils has hit another roadblock, with a new legal battle before the nation's highest court.

Woollahra Council on Friday secured its right to challenge an amalgamation with neighbouring Waverley and Randwick councils after the High Court granted a special leave application to hear its appeal.

The decision is a win for the community, Woollahra mayor Toni Zeltzer says.

"It's a shame we've had to take the NSW government all the way to the High Court to uphold the principles of democracy and genuine community consultation," she said in a statement after the outcome.

A hearing date for the High Court appeal has not yet been set, but it is expected to be in June or July.

Premier Gladys Berejiklian said the government is "considering its position" following the decision.

"We have a policy in place and we are intending to press ahead with that policy," she said in Sydney.

Residents of the three affluent eastern suburbs have meanwhile launched their own legal action in the Land and Environment Court to stop the merger, meaning the merger battle will continue regardless of the High Court outcome.

Friday's decision comes exactly one year after the state government began implementing its controversial council merger policy and this is just one of several legal challenges it has since faced.

In March, the NSW Court of Appeal found a proposed merger between Ku-ring-gai and Hornsby councils could not proceed in its current form because the government had failed to provide access to two reports used to justify the mergers.

Labor's deputy opposition leader Michael Daley urged the government to abandon its amalgamations agenda.

"One year on, this government's so-called reforms remain a dog's breakfast," he said in a statement.

But Ms Berejiklian insisted the policy is sound.

"We all accept and concede there were things we could have done differently," she said.

There are 20 already-amalgamated councils across NSW with five more to be created in Sydney if their legal challenges are unsuccessful.

Ms Berejiklian scrapped six proposed regional mergers after she replaced Mike Baird as premier in January but decided to push ahead with those in the city.