"This is extremely upsetting," she said. "We realise repairs have to be done on the museum and these are large, but we urge councillors to consider the future of our past when they meet tonight."

The Wellington Historical Society will meet next week to discuss the issue further, but Mrs Blake has warned councillors they face stern opposition.

"To a person everybody is against this," she said.

Wellington Council, as promised, has undertaken a review of its assets and is conducting a firesale. Among the assets to be sold is the Oxley Museum because it says it will take more than $750,000 for repairs.

It's understood the museum site is now history and there is speculation it will be moved to the Old Police Station. The current site will go under the hammer next year and councillors will vote on the issue at its ordinary meeting tonight.

A strategic plan is being put together to turn the museum into a modern day tourist attraction - on the one floor - at the Old Police Station with a revolving showcase of its finest works.

Council's general manager Michael Tolhurst said councillors would also vote to sell off 59 Swift Street (R & D Glass), 6 Warrawee Place (Wellington Smash Repairs), 20 Nancarrow Lane (Short Term Medical Accommodation), 178 Percy Street (Arts & Crafts Group) and 17 Maughan Street (Lock Up Keeper's Residence).

"We have spoken with the tenants about these places and they understand this is being done for commercial reasons," Mr Tolhurst said.

It's understood the sale will save council at least $1 million on depreciation and maintenance and what they will reap on the market for the assets is unknown at current market value.

The mayor Cr Rod Buhr says he understands the difficulty in change but he sees the asset sale and the move of the museum positive.

"This is another step towards council making itself financially sustainable into the future," he said.

"The sale of property assets will have a significant positive effect on Council's long-term financial position.

"We have been working closely with the historical society looking at options for their new location.

"We are helping them develop a strategic plan for the museum going forward. This will include recommendations on a new site for the museum.

"This is an exciting time for the museum, Council is very keen to see it become a new tourist destination and promotion of Wellington," Cr Buhr said.

The council is undertaking a sale of assets in line with its bid to retain its autonomy, but it won't be heartened by the Premier's thoughts at a local government conference at Coffs Harbour.

The Premier told the state's local councils to put "pride into the back seat" and consider merging with their neighbouring councils for the benefit of their communities.

Mike Baird's address to the local government conference in Coffs Harbour is his first direct pitch to the state's 152 councils since the government unveiled a $250 million package of incentives in September to encourage amalgamations.

Mr Baird said the package was a "once-in-a-generation opportunity to think bold", urging councils to tell their communities "that 19th century boundaries are something that needs to be challenged".

Councils have until the end of the financial year to apply for mergers - a proposition strongly opposed by many of them.

Local Government NSW president Keith Rhoades said while reform was "on our doorstep" there was a "lack of clarity" about how scale and capacity of councils was to be assessed.

"Does the government intend to change its 'no forced amalgamation' policy if councils aren't willing to merge, or if their proposals are rejected?" he said.

"Rest assured while LGNSW will continue to fight forced amalgamations, we urge councils to respond to the 'Fit for the Future' challenge, and get your proposals in earlier rather than later - whether you intend to merge, or feel you have scale and capacity to stand alone."

The conference is the first since a review of local government found it was "absolutely clear" NSW did not have the financial and human resources to support 152 councils.

The report said Sydney councils should be "significantly reduced" from 41 to between 15 and 18.

"Sooner or later, amalgamations will have to be part of the package," it said.