THE de-amalgamation bid for the return of the Stanthorpe Shire Council has been denied.

Local government minister David Crisafulli cited financial reasons for the rejection.

Return Our Shires Action Group (ROSAG) spokeswoman Mary Rofe said the group was understandably upset by the decision.

"As far as we can find out, the proposal was knocked back because of financial figures based on the Southern Downs Regional Council (SDRC) budget," Mrs Rofe said.

"We were expecting to at least go to plebiscite and then fight fairly with those who opposed de-amalgamation."

Local government minister David Crisafulli said the reason behind the rejection of the Stanthorpe application was the financial projections relied too heavily on grants and subsidies for the re-formed council to sustain itself.

"It's the ability to show two sustainable councils into the future, or the possibility of showing two, and some potential benefits for those regions as well," Mr Crisafulli said.

Mrs Rofe said when amalgamation was first discussed, the Federal Government granted a plebiscite and 90% of people voted against it.

"If we're talking about democracy then this is a joke because we were ignored by Labor and now the LNP is doing the same," Mrs Rofe said.

SDRC Mayor Peter Blundell said he was glad the decision was made quickly, so communities knew where they stood.

"I understand there will be disappointed people in the community, but with regards to council, I feel it is time to knuckle down and get on with making sure we represent the whole region the best we can," mayor Blundell said.

"Everyone that has stopped me ... has said they initially didn't think amalgamation was the right decision but since it has occurred we should be concentrating on administering the region efficiently."

While Mr Crisafulli and ROSAG agreed the process was not a waste, they did not agree about the future.

"For the time being the group will investigate options and seek avenues to appeal the minister's decision," Mrs Rofe said.