A racist “joke” has led to calls for more diverse councils.

Dubbo councillor Kevin Parker has been slammed for sending out a racist email with derogatory comments about Aboriginal Australians.

The “joke” in the email referenced to the children's tale Snow Whit, but replaced the seven dwarves' character names with offensive stereotypes about Indigenous employment, productivity and crime.

Cr Parker has since been sacked by The Bank of Queensland, but retains his position on Dubbo Regional Council.

Wiradjuri elder and former deputy mayor of Dubbo Regional Council Rod Towney says it would be different if the council were more diverse.

He is calling on the local Indigenous community to “step up and be counted” in September's New South Wales local government elections.

“When you're on council you're there for everyone, but when issues do come up, like the email, you can talk on behalf of Aboriginal people and nip issues right in the bud,” Mr Towney said.

“There are Aboriginal people here who are very well educated, have degrees, have worked in public life, and they can get up and debate with the best of people.

“We need to stand up and be counted as best we can.”

In the last round of NSW local government elections, the typical candidate was an English-speaking professional male aged 60-69 years.

None identified as an Aboriginal or Torres Strait Islander, as having a disability, or not having served as a councillor before.

There has not been a single mayor in NSW that identifies as Aboriginal or Torres Strait Islander since 2012.

Dubbo Regional Council's deputy mayor Stephen Lawrence wants change too.

“Local government is the grassroots level of government and Aboriginal people are entitled to participate and be represented,” Cr Lawrence said.

Mr Towney said that non-Aboriginal councillors should consider stepping aside a making way if they are serious about increasing candidate diversity.

“Calls from councillors to better support Aboriginal people are nothing new, this has been happening for years,” he said.

The Australian Local Government Women's Association president Marianne Saliba says more women should put their hands up too.

Three NSW do not have any female councillors: Berrigan, Blayney and Wingecarribee.

“We do have a significant gender imbalance in NSW when only 32 per cent of elected representatives in local government are women. In fact, female representation on councils is below fifty percent across all jurisdiction in Australia,” Ms Saliba said.

“We know when women are at the table it changes the tone of the debate. Arguments turn to discussions and agreements and it becomes less personal.”