A decades-old free service giving neighbours, relatives and businesses a cheap way to resolve disputes is to be closed.
Community justice centres have operated since 1980, providing mediation and conflict management services in NSW and spurring similar services across the nation.
More than 12,000 people use the service each year in NSW, with 86 per cent willing to recommend it to others.
But its days are numbered, with the government confirming on Thursday plans to close 77 centres across the state by the end of the financial year.
The shutdown and repeal of the act worries local government and lawyers alike.
"For more than 40 years, Community Justice Centres have provided much-needed free alternative dispute resolution for people who cannot afford a lawyer or who do not wish the stress or expense of court proceedings," Law Society of NSW president Brett McGrath told AAP in a statement.
"The closure of these centres represents further erosion of access to justice which will particularly affect people in vulnerable circumstances."
Local Government NSW said it had not been consulted on the closure.
"We will be reviewing the changes closely in an effort to understand any adverse impact on councils and our communities," president Darriea Turley said.
"LGNSW would be concerned that the closure of the CJCs may reduce community access to the resolution of legal issues that is more efficient, effective and affordable than other legal pathways."
Both stakeholders stressed it was crucial the government made sure alternative mechanisms were available.
Success stories on the Community Justice Centres website boast of resolving neighbourly noise disputes and a battle over a tradesperson's invoice.
Independent MP Gareth Ward said defunding the centres would only add to the delays in the "already overwhelmed local court system" including small claims courts.
But a government spokesman said the alternative dispute resolution system had "significantly matured" in the past 40 years, with many state agencies offering mediation.
"Despite mediation being the primary objective of Community Justice Centres, less than nine per cent of inquiries proceed to mediation," the spokesman said.
"The NSW government remains committed to ensuring that the people of NSW have access to resources and services that help them resolve their disputes quickly and informally, under a less adversarial and expensive model for the parties involved."
Court-mandated referrals will continue to be provided by the communities and justice department.
Asked where neighbour and business disputes would be resolved in future, the spokesman said the avenue would depend on the nature of the dispute.
Legislative amendments will be required to facilitate the new process.
"Staff and key stakeholders affected by the service closure will be supported over the coming months to ensure a smooth transition to new service arrangements for the community," the spokesman said.
