Katoomba tip's opening hours are to be reduced, potentially saving council more than $1 million a year.
At its monthly meeting this week, council voted to open the tip from 10am-4pm Monday to Friday and 10am-2pm on Saturdays.
The tip used to be open 8am-5pm seven days a week. Both it and Blaxland tip were funded entirely from the gate fees.
But in the current financial year, council faced a huge loss in gate fees - up to $1.19 million - after two of the major commercial waste collectors found a cheaper tip in western Sydney.
It was faced with having to increase the gate fees, which would likely lead to customers taking their business elsewhere or illegally dumping rubbish - which would in turn cost council to clean up.
The reduced hours means Upper Mountains ratepayers will still have easy access to the tip and to the recycling service it offers.
And it will save council $1,098,547 on current costs.
Councillors voted to accept the new hours but added an amendment that there should be no forced redundancies of staff and all affected staff should be offered redeployment options.
The new hours are due to be implemented from August 1