Mayor Gary Rush says Bathurst Regional Council staff, many of whom have been through the merger process before, are not frightened by the prospect, while Oberon mayor Kathy Sajowitz says her council will consider its position and consult with its legal team.

Minister for Local Government Paul Toole, meanwhile, assured ratepayers of both councils that the “sky will not fall in” if the councils are merged.

In a decision handed down on Friday morning in the Land and Environment Court, Chief Judge Brian Preston rejected the challenge launched by Oberon, Cabonne and Gundagai councils against their respective forced mergers.

The judge also ordered the councils to pay the NSW Government’s costs in the proceedings.

Mr Toole said the councils had been given until noon next Friday to decide if they would appeal the decision, but said “hundreds of thousands of dollars” might already have to be paid to the NSW Government as costs in the rejected challenge.

”We have seen a lot of money being spent through the legal system, and a lot of people just want to see a strong council serving across the area,” he said.

If there isn’t an appeal, Mr Toole said, a new council could be proclaimed by the end of the month.

That will mean Bathurst and Oberon councils are dissolved, an administrator is appointed and $15 million is available to the new entity from the NSW Government to implement the merger and build infrastructure.

A local representation committee will also be appointed to provide advice to the new council before elections are held in September 2017.

Cr Rush said council acknowledged the court’s decision and would “await further instruction” from the NSW Government.

“If the merger is to proceed, the whole objective will be to make sure that it's successful and it achieves the aims of reform which is to provide increased levels of services and amenity and improvements to the quality of infrastructure,” he said.

Cr Rush commended the council staff for not “allowing themselves to be distracted by what's been going on”.

“A lot of the staff have been through a merger before with Evans Shire Council and are pretty familiar with it, so they are not deterred nor frightened by the prospect,” he said.

Mayor Kathy Sajowitz said Oberon Council was disappointed with the decision and “we will now consider our position, consult with our legal team and discuss the findings as a council”.

She said the Oberon community had been “resolute in its support of the council and we will continue to consider the community’s view in regard to any further action”.