A New South Wales family has begun reburying seven loved ones as graves at Badgerys Creek in Sydney's west are dug up to make way for the construction of a new airport.

The Shadlow family got a call from a Federal Infrastructure Department staffer notifying them that graves of their relatives would have to make way for the continuous development.

"I never like to know about graves being disturbed, there's a lot of family emotion and with these particular graves there's a lot of history involved so I was concerned when I was first notified of it," Elizabeth Shadlow said.

The Shadlows held a service at a nearby cemetery for the reburial of their relatives.

Some of the old graves which are being cleared to make way for Badgerys Creek airport. ( Supplied: Peter Allen )

"We've buried four people, my sister, both grandfathers, my maternal grandmother, and previously last week we buried my great grandfather," John Shadlow said.

Mr Shadlow led the service for about 20 family members, outlining the history of his family who were among the first settlers of Badgerys Creek.

He grew up in a small house in the area and has seen it change dramatically.

"It's very sad in some ways because Badgerys Creek was a picturesque little place, when I grew up there was a single teacher, everyone knew everyone else," he said.

"Now there's nothing left, all the houses are demolished, people are being evicted from the remaining houses, it's a wasteland."

Next of kins contacted by department

John Shadlow's family has been reburied to make way for the Badgerys Creek airport. ( ABC News: Avani Dias )

The Federal Infrastructure Department said since March last year it had been trying to contact the known next of kin of every person buried in Badgerys Creek.

"There has been ongoing consultation with relatives, the NSW Government and relevant churches to ensure the relocation occurs in a sensitive and respectful manner," a spokesman said.

"The department has undertaken every effort to contact the known next of kin, including a public notice period that began in March 2016."

Graves where no known next of kin came forward have been relocated to the Badgerys Creek Memorial Cemetery, and each grave has been provided with a headstone and a plaque, with a private service to be held, the spokesman said.

'The church would be underneath the runway'

Mr Shadlow has come to terms with the process.

He said it had been respectful and the Federal Government paid for new headstones and the service.

"You can't leave a graveyard in the middle of a runway because the church would be literally underneath the runway ... so it had to be moved."

Construction of the 1,800 hectare airport is due to start next year and is scheduled to take eight years with the airport slated to open in 2026.