Blue Mountains Mayor Mark Greenhill has refused to accept proceeds from the sale of a racy snap of the Duchess of Cambridge's bottom, money which was offered up to bushfire victims.
Media outlets reported that Blue Mountains amateur photographer Diane Morel, a travel company managing director from Winmalee, sold the photo to an agent after discovering it on her camera's memory card. It was on-sold for a rumoured $180,000 to German tabloid Bild.
The photo was taken while Prince William and his wife were visiting bushfire-raved Winmalee in April.
Ms Morel, 47, had offered to give the money to the Blue Mountains Bushfire Mayoral Relief Fund. She refused to comment to the Gazette about the knockback from the mayoral fund or the worldwide reaction from the photo.
Clr Greenhill said he did not feel comfortable accepting money at the expense of someone who had shown "great kindness" to the region.
"It was a really generous gesture for the Duke and Duchess to visit the Blue Mountains ... I'm sorry the Duchess's memories of her time amongst us may now be ruined," the mayor said.
"In society we ought to be sheltering young women from this sort of thing. I couldn't in all good conscience accept the proceeds from that photo to my mayoral fund."
Ms Morel was affected by last year's bushfires, which came within 100 metres of her home, her father told The Women's Weekly, and she had friends whose homes were destroyed.
The British press refused to publish the photograph. It is likely Ms Morel lost a significant percentage of money paid for the photograph to the agent who negotiated the sales.