The resignation comes at the same time as the UHSC announces it has appointed an independent company to review the Scone airport's $23.5 million upgrade project.

Council general manager Steve McDonald has thanked Mr Bedggood for his service to the community.

"On behalf of the organisation I thank him for his significant contribution to Council over the last eight years and in particular in the role of mayor since April 2015. He has worked tirelessly in the interests of the Upper Hunter Shire.

"We wish Wayne and his family the very best for the future."

Mr Bedggood was elected to Council in 2012 and 2016, and was first elected Deputy Mayor in 2013. He was first elected Mayor in April 2015 (after the resignation from the mayoral role by Cr Michael Johnsen who had been elected to the seat of Upper Hunter in the NSW State Election).

Councillor Collison - who has acted as deputy for the past five years - was also full of praise for the outgoing mayor, describing him as a "close friend" who will be "much missed".

As per the Local Governments Act, there will be an extraordinary meeting within 14 days where the councillors will vote to elect a new mayor. The position is usually voted on biennially.

At this meeting councillors will also determine whether to apply to the Minister for Local Government to hold a by-election for the vacancy on Council, or to maintain the vacancy until the next election which is due by September 2021.

The next local government elections are due by September 2021, having been postponed by the NSW Government due to the COVID- 19 restrictions. As this is less than 18 months away, a by-election is not obligatory but could still occur.

It is unknown exactly who will put their hand up for the position, although Mr Collison is expected to run. Councillor Sue Abbott, who contested Mr Collison for the deputy position in 2015, has ruled herself out; while former mayor Lee Watts said it was too early to say whether she would consider applying for the top job again.