"The interim analysis showed for a small number of local governments in regional areas, amalgamations were not a priority due to their remoteness and size," Mr Castrilli said.

"Outcomes from departmental discussions with local governments in coming weeks will be incorporated in the steering committee’s final report, due in March 2010.

"I expect more mergers to be announced in the coming months as these discussions proceed, including metropolitan councils being prepared to consider mergers.

Shadow Local Government Minister Paul Papalia said Mr Castrilli's local government reform process had proved to be a waste of time, effort and money.

"After 12 months it has been revealed that only nine out of the State's 139 local government authorities plan to merge – a total reduction of only six councils,” Mr Papalia said.

"The secretive process run by the Local Government Minister has been a dismal failure.

"It has proved to be expensive and time consuming and has resulted in increased stress for more than 13,000 workers employed by local councils across Western Australia."

Mr Papalia said that merging nine councils could have been achieved without the threat of forced amalgamations - which Mr Castrilli made earlier this year and then withdrew.

"This whole process has proved to be an embarrassment for the Premier who vowed to reduce the number of councils by at least 40," Mr Papalia said.

"Instead of providing certainty, the government has created an incredible amount of disruption within the local government sector.

"Minister Castrilli must be held accountable for this farce."

Mr Papalia said ratepayers had paid "hundreds of thousands of dollars" for the preparation of submissions for the reform process.

"I am concerned that local councils around our State have paid far more for the preparation of submissions than the $16,000 the Barnett Government has offered to compensate them with," he said.

"Not only are ratepayers not going to be fully compensated for the failed reform process but there is still no indication that the Barnett Government is going to foot the $1 million bill it will cost each council to merge."