A proposal for a major waste tip in WA's Wheatbelt has been dumped amid concerns it would have threatened a nearby endangered numbat population.

The planned landfill near Cuballing would have accepted waste from seven councils, but attracted considerable opposition from green groups and the local community.

The councils have now each agreed to look for an alternative site due partly to the high cost of conducting an Environmental Protection Authority assessment.

Greens MLC Lynn MacLaren said the tip would have attracted feral cats, potentially threatening the numbat population at the nearby Dryandra Woodland Reserve.

Ms MacLaren said she supported the creation of joint-council landfills, but not at the expense of native animals.

"It was far too close to those endangered numbats," she said.

"Really the shire should have picked up on that straight away, they should have found a different location when they first mapped it out.

"[The Dryandra Woodlands] is one of the last remaining wild populations of numbats that we have across Australia so it was just the improper site.

"Landfills attract populations of wild cats and they also attract other large birds which can prey on marsupials."

Ms MacLaren said the WA Government needed to improve its policies regarding the construction of landfills so there was clear direction about where they could be located.

"Obviously something went wrong, in this case, for the councils to have gone so far down the track towards developing this proposal and it was a costly educational exercise for them," she said.

"I really do hope that they can find another location that doesn't put our native animals at risk."

Waste dump vital to cost-effective rubbish disposal

Shire of Cuballing chief executive officer Gary Sherry said the cost of running multiple landfill sites in the region would only continue to grow.

"Finding that right site will allow us to cost-effectively provide waste management for our residents and local businesses.

"Without that solution it will become very expensive to live and run a business in our region. If we can't afford it then there will be negative impacts right through the region," he said.

The Shire of Williams has also passed a motion to not proceed with the Nebrikinning Road site.

Chief executive officer Geoff McKeown said it was a disappointing outcome considering the time and money that had gone into the proposal.

"The group has tried on several occasions to find a suitable site and due to different reasons has had to withdraw from each of those sites," he said.

"It may be time for government to assist the group in looking for a long-term option."

Nebrikinning Action Group secretary Filipa Walmsley was one of the six applicants that appealed against the location of the tip.

The group is calling for more transparency from shires when it comes to decisions on choosing future proposed sites.

"It's been near impossible for the past year to obtain information on the Great Southern Regional Waste Group," she said.

"Some of their minutes have been embedded in the shire of Wagin minutes and I think this is an example of poor public consultation and transparency."

The Shire of Wagin has been contacted for comment.

The seven councils said they have agreed to proceed with investigations into alternative short and long-term options to improve waste management in the region.