Four Anzac Day marches have been cancelled in NSW's Blue Mountains region after the State Government introduced new anti-terrorism requirements, which RSL clubs say would cost them thousands of dollars to comply with.

The RSL sub-branches in Katoomba, Blackheath, Springwood and Glenbrook have cancelled their annual marches, which have been staged for almost 100 years.

One club said it had been advised it would cost more than $10,000 to comply with the measures, which include the installation of barriers to prevent trucks being used in attacks like those in Nice and Berlin last year.

The State Government said it had offered to share the costs if the local council also contributed, but the council said the Government should fund the measures in full.

Katoomba RSL director David White said the local sub-branches had already been struggling to pay for compulsory traffic management measures, and the new security requirements were "the straw that broke the camel's back".

"To the broader community who can see that, it looks like the terrorists are winning, because something that's been going for 97 years without fail now isn't going to happen," Mr White said.

He said dawn services and wreath-laying ceremonies were also under threat because of the increased costs.

Mayor slams Government offer to split funding

The State Government said the council had a responsibility to fund the measures, but the Government had offered to pay for half the costs if the council matched the contribution.

In a letter to the Katoomba RSL Sub-Branch, Roads Minister Duncan Gay wrote: "Councils across the state have always been the 'first point of contact' to help assist and fund the NSW Returned & Services League and its sub-branches in hosting Anzac Day marches."

"[The] Blue Mountains City Council constantly cries poor in the lead up to Anzac Day (indeed, I'm not aware of any other council which behaves in such a manner)."

But Blue Mountains Mayor Mark Greenhill said he was appalled the Government was refusing to fund the measures.

"What other government in a country around the world would say 'you need these measures to keep you safe but we won't fund them'? It's completely outrageous," Cr Greenhill said.

"I represent a community today that is shattered, heartbroken."

A spokeswoman for Police Minister Troy Grant said a meeting between the council and the Minister was being arranged.

"It is perplexing that the Blue Mountains City Council can afford a $130,000 campaign opposing Badgerys Creek airport, yet it cannot afford to honour our veterans," she said.