Wollondilly Council will work alongside Upper Lachlan Shire Council to ensure the only road in and out of Yerranderie remains passable.
At Monday night's council meeting councillors voted to help Upper Lachlan Shire Council seek grant opportunities to fund maintenance of the Upper Lachlan section of the Oberon Colong Stock Route.
The stock route is the only public road into the remote Wollondilly Shire mining village.
The route is only accessible via 4WD, however even experienced drivers with heavy duty 4WD vehicles have had trouble navigating it recently.
Councillor Matt Gould said his council would work alongside its neighbouring councils to ensure the route did not become "impassable". "We will ask Upper Lachlan Shire Council to come up with a plan to maintain its stretch of the road," he said.
"We will work with them and help them to apply for any grant funding that might assist them in taking care of the road.
"It's not meant to be a four wheel drive track - four wheel drives are recommended but it is meant to be a road so it should be easily done in a two wheel drive as well."
Public access to the historic rural village from Wollondilly Shire was cut off when construction of Warragamba Dam created Lake Burragorang in the 1950s.
Cr Gould said it was essential to keep the route open to ensure the town was not cut-off entirely.
"We understand Upper Lachlan Shire's position," he said.
"They don't have many ratepayers in that area so it isn't a top priority.
"A lot of effort has gone into coming up with a solution.
"Hopefully now that there has been some open discussion between their general manager and our chief executive they will understand why we care so much.
"Hopefully this means we have a new path forward."
Cr Gould said the Yerranderie committee - which includes police, national park representatives and residents - were supportive of the plan. "The committee provided extensive feedback on the options we were looking at," he said.
"They worried that if [Wollondilly Council] helped Upper Lachlan Shire to fund their section of the road that the Wollondilly section would be unduly affected.
"From all of the feedback we have had so far they are happy with this outcome."
Cr Matt Gould told the Advertiser last year that the village had "great tourism potential".
However, Cr Gould said road access to the site remained a huge issue.
"The town would make a great tourism destination so it would be beneficial to have the road fixed," he said.