Her resignation, which will take effect on January 1, comes less than two years into a four-year term.

Mrs Kibble will be replaced by Richard Colley, the commissioner who undertook the public inquiry into Shellharbour City Council.

Local Government Minister Barbara Perry said in a statement that Mrs Kibble had overseen major reforms to Wollongong City Council's planning and governance processes, and had helped restore confidence in the council.

No reason was given for her resignation.

"Mrs Kibble's efforts in dealing with a large backlog of development applications, her work in finalising the new LEP for West Dapto and her implementation of an honest and transparent planning process has been invaluable," Ms Perry said.

"I thank Mrs Kibble for her hard work and commitment over this time."

Mrs Kibble is the daughter of former governor-general Sir John Kerr and, together with administrators Colin Gellatly and Robert McGregor, took on the task left by Wollongong's dismissed councillors in the wake of the ICAC inquiry.

She came to Wollongong after a four-year term as administrator of the dismissed Liverpool City Council.

From December 1987 to November 1997 she was the chief executive officer of the Department of Urban Affairs and Planning.

This department managed the policy and direction of planning across NSW.

She was appointed Nepean City Council chairperson and University of Western Sydney deputy chancellor in 2000 and has been a non-executive director and chairperson of Sydney Water.

On Australia Day 1994 she became an officer in the Order of Australia for her service to urban and regional development.

Mrs Kibble's replacement, Mr Colley, had a marketing background before moving into local government in 1995.

He had served as a marketing executive with Coca-Cola, Tooheys and Sunburst Regency Foods and was an executive director of the Newspaper Advertising Bureau of Australia before he was employed as Bankstown City Council's general manager.

As general manager, he famously oversaw a $2.1 million investment by the council into a KFC fast food store.

He retired from Bankstown council in September, 2007.

For full coverage see Saturday's Mercury.