Wollongong councillors have once again deferred setting up the estuary management committee, which was to replace the work of the axed Lake Illawarra Authority, as their council is contributing twice as much money but has the same number of voting members as Shellharbour.

The lake committee has been in limbo for the past 18 months due to concerns - mainly from Wollongong - about the NSW government foisting costs on to the cash-strapped council.

Shellharbour council endorsed the committee structure in 2013, and last October - after several changes and rejections due to funding concerns - Wollongong agreed to get on board.

At last week's council meeting, Wollongong councillors were due to vote for three committee members, until Vicki Curran pointed out their council was contributing more funds.

"The ratio of what we pay compared to Shellharbour is two to one, so we should get additional [representation] on the committee," she said.

Other councillors strongly agreed, eventually voting unanimously to defer the selection of committee members until the issue was resolved.

But environmental strategy and planning manager Renee Campbell indicated they could face problems if they pushed for extra representation.

"Shellharbour indicated a desire to have an equal number of representatives to Wollongong council and nominated three councillor representatives to the committee," Ms Campbell said.

If councillors wanted to change the number of Wollongong representatives, she said this would need Shellharbour's approval and the southern council may choose to establish the committee without Wollongong.

Labor councillor Janice Kershaw said this was an "irrational, illogical" stance as Wollongong had "greater responsibility and greater costs".

She said it was an "absolutely ridiculous" idea the two councils may have to set up separate committees to only look after their portion of the lake.

"But I don't see any other way, other than if the Lord Mayor thinks it's possible that he could have discussions with the mayor of Shellharbour council," Cr Kershaw said.

"Because it's just irrational, illogical - well, we are talking about Shellharbour aren't we - that we put in double the amount and have the same [number of] community representatives and the same [number of] councillor representatives."

Lord Mayor Gordon Bradbery agreed that he and Deputy Lord Mayor Chris Connor should meet their Shellharbour counterparts to renegotiate the terms.

Shellharbour Mayor Marianne Saliba said she had spoken to the Wollongong delegates and was convinced there should be equal representation from both councils - especially as Wollongong had "twice the area [of the lake] to cover, and may well cause twice the damage to water quality".

"Also, the estuary management committee is not a decision-making body - it would make recommendations that would go back to Wollongong and Shellharbour councils for final decisions," she said.

kmcilwain@fairfaxmedia.com.au