The highly-anticipated fourth movie in the Mad Max series will no longer be filmed in Broken Hill in New South Wales's far west, despite years of preparation.

Kennedy Miller Mitchell (KMM), the production company behind Mad Max: Fury Road, says the area around Broken Hill remains too green for the post-apocalyptic film.

Production on the film, which will star Tom Hardy and Charlize Theron, was meant to begin early next year after already being delayed twice because of weather.

The project was expected to pump $10 million into the local community and pre-production work in Broken Hill had already begun.

Mayor Wincen Cuy says the council understands why the decision has been made.

"This decision has been 12 months now in the making and I believe it hasn't been taken lightly," he said.

"It is a tragedy that it can't, but nature has caused it, nothing other than nature has caused it."

Mr Cuy says the money KMM has already paid to use the local film studio is "signed, sealed and delivered" but other parts of the Broken Hill community will suffer from the decision.

"What we're saying is that... from a community's point of view, and from trying to take Broken Hill into the future, yeah it is disappointing."

But Mr Cuy is hopeful Broken Hill could also stand to gain from future opportunities with KMM.

"Let's look at the long-term future; if there's going to be a Mad Max 4, it's better to be made (so) then we possibly can get some input into Mad Max 5 or have Mad Max 5 (filmed) here," he said.

KMM has made no comment as to where the filming of Mad Max: Fury Road will now take place.