Administrators from both councils have been denied access to today's historic local government conference which begins with an address by Prime Minister Kevin Rudd this morning.

The meeting of 565 councils, described as a "new era" for federal-local government relations, will focus on issues such as infrastructure, sustainable cities, affordable housing and constitutional recognition of local government.

Yet the names of Wollongong and Shellharbour's state-appointed administrators are not on the guest list, instead the councils will be represented by federal members Sharon Bird and Jennie George.

In a letter to Wollongong City Council, the Department of Infrastructure, Transport, Regional Development and Local Government which is organising the event, said administrators were not elected and therefore not welcome.

Shellharbour administrator David Jesson described the decision as disappointing.

"It is an instance of double jeopardy where residents don't have democratic representation yet they find themselves being further disadvantaged by not having the benefit of those people running the council represent their view as ratepayers," he said.

Wollongong City Council general manager David Farmer also said he was disappointed by the decision, but believes the region will not be disadvantaged.

"(The event) will be an opportunity for local government to press its claims that it is a fundamentally under-funded sector, that Australia-wide infrastructure condition is slipping backwards and that there needs to be fundamental funding reform if this is to be addressed," he said.

Former Wollongong lord mayor Alex Darling said administrators should attend the meeting.

"I think it is terrible ... I don't think it is reasonable representation for our community," he said.

Former Shellharbour mayor David Hamilton said it was right that the region's federal representatives were the ones attending.

"Sharon Bird and Jennie George both would be up to speed on what the needs are in this area," he said.

Ms Bird said the situation was not ideal.