Premier Mike Baird and Local Government Minister Paul Toole have ignored the findings of a parliamentary inquiry into local government, as they push ahead with controversial council merger reforms.

The upper house inquiry into the financial viability of local government and the impact of forced mergers had made 17 recommendations, including the finding that the Fit For The Future process the Baird Government had relied on as the basis of its merger plans was flawed.

Protesters rally against forced amalgamations. Credit:Peter Rae

It demanded the Baird Government withdraw the statement that 71 per cent of councils in metropolitan Sydney were "unfit".

It also called for greater independence for the Boundaries Commission, which is currently deciding the fate of councils earmarked for mergers.