The Euchareena Waste Facility has been closed after a large amount of waste was dumped at the site.
Dubbo Regional Council's manager solid waste Mark Giebel said it appeared the waste had come from a renovation and contained a lot of sheeting from old walls.
"People really need to be aware of the risks that asbestos poses and avoid playing renovation roulette," he said.
Proper management of asbestos is important because of the significant impacts on your lungs that asbestos can cause in the longer term.
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"Asbestos can be present in many houses and buildings built before 1987 and most people can't tell whether building materials contain asbestos just by looking at them," Mr Giebel said.
"Asbestos becomes a health risk when asbestos fibres are released into the air and breathed in. So it is important for everyone to take precautions and be aware of how to safely handle and dispose of asbestos."
Mr Giebel said with recent changes to legislation council and EPA can now issue on the spot fines of $15,000 for illegal transportation and disposal of asbestos.