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The ABC reports The NSW Independent Planning Commission has ordered a local planning body to approve a massive new cemetery in the Campbelltown area in Sydney's south-west.

The cemetery at Varroville will comprise of 136,000 burial plots and the Planning Commission said its construction was in the public interest because of limited burial space near urban growth areas.

The contentious proposal  has angered local councils, which oppose the cemetery, but had their powers to block the application taken away and given to the Commission in June last year.

Campbelltown Mayor George Brticevic said the State Government's decision to intervene was "undemocratic" and the construction would destroy a protected open space known as the Scenic Hills.

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