Chief Judge of the Land and Environment Court Brian Preston threw out the court challenge on Friday morning, effectively ending any hope of reversing Gundagai’s merger with Cootamundra. 

It comes after Gundagai shire was wiped off the map in May, when elected councillors were sacked to make way for a single administrator in the face of community outrage.

The government razor gang has argued forced mergers will save the state $2 billion over the next 20 years.

Politically-appointed administrator of the new Cootamundra-Gundagai council Christine Ferguson – a former federal president of the National Party – repealed a council decision to spend ratepayer funds on the court case soon after she was installed.

Other parties to the case, Oberon and Cabonne shires, will each pay one third of the state government’s legal fees, but Mr McAlister and former deputy mayor David Graham will pay the final third out of their own pockets. 

Mr McAlister remained adamant the Gundagai community wanted to exhaust every avenue of appeal.

“At least we can say we put in 110 per cent to represent what the community wanted,” Mr McAlister said.

“At the end of the day the state government proved it’s too big, has too much money and the case was thrown out.

“If David (Graham) and I have to foot the bill, somehow we will manage.”

Former member of the Nationals’ state executive John Knight predicted the 23 per cent two-party preferred swing away from the Nationals in Gundagai at July’s federal election would be repeated at the next state election in two years.

“I’m not amused, in fact I’m pretty pissed off,” Mr Knight said. 

“I can't see how they've come to the conclusion due process was followed.

“Hundreds and hundreds of written and verbal submissions against the merger were ignored; this is a stitch up.”

Administrator Chirstine Ferguson said she may reconsider making a financial contribution, but would not indicate an amount.

“The decision brings finality to the whole thing, which has been hanging over our heads for five months,” Ms Ferguson said.

“A decision has been made and we have to move on.”