A NSW Treasury Corporation report has found several mid north coast councils are facing a difficult financial outlook.

Councils are seen as financially sustainable if they generate enough money to meet demand for services and infrastructure.

The report said the north coast's low population density makes it hard for councils to pay for renewing and maintaining assets, like roads and bridges.

The Greater Taree outlook is 'negative' and its Financial Sustainability Rating is 'very weak'.

Great Lakes is considered to be in the best position in the region with a 'moderate' rating and a 'neutral' outlook.

Bellingen, Coffs Harbour, Kempsey, Port-Macquarie Hastings and Nambucca all have a negative outlook, which indicates weakening performance and financial sustainability.