Green waste now rotting at Blaxland tip will be moved to Katoomba in a bid to stop a smell that has disturbed nearby residents.
Following a mayoral urgency motion in August, council staff investigated the possible source of the odour.
In a report at this week's meeting, staff noted that the tip "has been impacted by a number of notable events over the past two to three years that have created odour challenges".
These included the massive rainfall over three days in February this year, bushfire preparation last summer and the transfer of domestic green waste material to the tip in December 2017.
The rain had the most significant impact, with it causing two landslips on the landfill mound which exposed old, decaying waste. That has since been recapped and covered.
The green waste issue has been ongoing since Katoomba stopped taking such material in December 2017. It was also exacerbated last summer after council stopped charging people for their green waste to enable them to more easily prepare for bushfires.
In two months, from December to February, there were 11,367 resident loads of green waste, more than 2,000 tonnes. Due to the huge volume, and the difficulties with transport contractors because of COVID-19, there have been delays in processing the organic material.
It has now been decided to return green waste to the Katoomba tip, where it will be stored inside the transfer shed which shouldn't have an impact on residents.
Councillors voted unanimously to accept the recommendations. An external audit will also be undertaken at Blaxland to identify any further areas for improvement.