Federal MP Melissa Price has been forced to backtrack on her claim WA communities were clamouring for the cashless welfare card after the ABC spoke to several councils who said Ms Price had never even discussed the issue with them.

Ms Price and fellow Liberal MP Rick Wilson, whose electorates take in some of the state's most remote communities, told the ABC earlier this week they had both been inundated with requests to introduce the card, which cannot be used to buy alcohol or gamble.

Ms Price said she had been "overwhelmed" with requests from communities within her electorate of Durack, the largest in Australia.

"I definitely recall conversations with the Shire councils of Cue, Meekatharra, Wiluna just off the top of my head, Carnarvon," she said.

"All of those councils have expressed an interest in being involved with the cashless welfare card."

But representatives from three of the shires have told the ABC those conversations did not take place.

Cue Shire president Ross Pigdon said he was not aware of anyone from his council or shire discussing the introduction of the card with Ms Price in the last 12 months.

"She's made comments stating she'd spoken to us and she hasn't spoken to us at all," he said.

"We have no knowledge of speaking to anyone about this cashless welfare card, none whatsoever.

"I feel it's a little bit inappropriate.

"I've had no conversation, neither has my CEO, we've had no conversations with any politician about the cashless welfare card."

Former CEO rejects discussion claim

Following questions from the ABC, Ms Price issued a statement which said she was referring to a 2015 conversation with a former CEO of the shire.

But former Cue CEO John McCleary, who relocated to the Shire of Upper Gascoyne in late-2015, also said he had not discussed the card with Ms Price while he was CEO.

He declined to comment further.

Following further questions from the ABC, Ms Price said she was actually referring to a November 2015 presentation she gave to a meeting of six local governments from across the region including Cue, Yalgoo and Meekatharra.

In the minutes of this meeting, Mr McCleary is listed as representing the Shire of Cue as its CEO.

The cashless welfare card cannot be used to buy alcohol or gamble. ( ABC News: Erin Parke )

"I was giving a presentation about the consultation and what it would mean for Geraldton and the Mid West, and it was in that context that we were having a much more general conversation," Ms Price said.

"I felt quite confident that all of the people in the room expressed an interest in being considered."

But Ms Price is not listed as attending the meeting in the official minutes.

She rejected assertions she had falsified support for the card.

"What I probably should have said is at some point these shires have indicated there was an interest and we're now 18 months later," she said.

"I guess I should've prefaced that yes, that happened 18 months ago, [but] I certainly didn't make those comments to try and drum up business or to create any mischief for any shire councils, not at all.

"The reality is I've got 52 shire councils in my electorate.

"I talk to all of them and it is the truth that there's about 50 per cent of them, at some point in time, that have indicated to me they would like to be considered as a trial site."

A spokesman for Ms Price later said the presentation to the Murchison councils occurred in a May 2016 meeting, which she is noted as attending.