Mr Kelly said last month the appointment of Kiama Deputy Mayor Ben van der Wijngaart to the trust's board would be "inappropriate", given his history of campaigning against a planned multimillion-dollar resort in the park.

"This decision is based on the reasoned view that it would be inappropriate to appoint representatives who have actively demonstrated their opposition to the activities of the trust, as occurred during my visit to the park last year," Mr Kelly said.

Killalea Coastal Investments was given a 52-year lease in April 2007 to build 202 units, a conference centre, tennis courts, pools and restaurants in the park.

To avoid a conflict of interest, Councillor van der Wijngaart gave up his Save Killalea Alliance membership after his nomination to the trust board.

In NSW Parliament this week, Greens MP Sylvia Hale asked Mr Kelly if it was "now government policy that only those who support the Government are to be appointed to the trust boards of state parks?"

Mr Kelly said Cr van der Wijngaart's nomination was "unacceptable".

"Accordingly , I decided to review the composition of the trust board.

"Kiama's representative was no longer required as Killalea State Park is located outside its local government area," he said.