The councillors have left just weeks after the local government elections.
Liverpool councillor Peter Ristevski and Cumberland councillor Steve Christou have both quit Our Local Community (OLC), announcing plans to form their own political party.
OLC, which was founded in 2013 by former Parramatta mayor (and current Cumberland councillor) Paul Garrard, is a conservative party that contests a number of local government areas across New South Wales.
In a media release today, Christou stated:
"On Friday 25th October I informed Our Local Community Party Leader Councillor Paul Garrard that I will be resigning from the Our Local Community group effectively immediately.
My decision to resign from the Local Government Party boils down to two issues.
My disappointment that my Our Local Community Councillor Colleagues met with Labor Party Members trying to work out a deal around the Mayorship of Cumberland City Council. The meeting which was attended by my two fellow Our Local Community Councillor Colleagues was hoping to negotiate a Labor & Our Local Community partnership to support each other for a term as Mayor. I was never in favour of this arrangement and had made my feelings expressly clear that I would not vote for such an arrangement when voting for the Mayor in Councils Chamber.
Furthermore I could not understand the willingness to enter into an arrangement which would include supporting my political opponent Councillor Ola Hamed to be installed as Mayor with the support of my own party. For over five years and two Council terms I have worked very hard to turn the Council seat of Granville from a safe Labor Seat where two Councillors should be getting elected into a marginal seat ensuring the Labor Party is only able to have one Councillor elected to the Granville Ward.
The breakdown of the relationship between the Our Local Community Group and the Liberal Party Councillors. Whilst I do not agree with the decision of the Liberal Party Councillors to enter into an alliance with the Labor Party and install a Labor Mayor discussions between the Our Local Community Group and the Liberal Party should never have deteriorated to the point they are now.
I wish my former Our Local Community Colleagues all the best moving forward.
The people of Cumberland made a clear choice to elect nine conservative Councillors out of 15 reducing the Labor Party to a minority of five elected Councillors effectively 32% of the vote. In contrast 70% of the community voted for a conservative Councillor. The outcome where Labor achieves the Mayorship from minority is clearly not what our community wanted. I will continue to represent the residents of Cumberland to the best of my abilities.
In the not too distant future myself and my Liverpool Councillor Colleague Peter Ristevski will be making an announcement of a new political party entering the scene one which represents the voice of local residents."
Prior to today's formal announcement, Christou publicly teased a "big announcement coming soon".
Ristevski, a former Liberal, was elected to Liverpool City Council's South Ward at last month's NSW local elections, while Christou, a former Labor members, was re-elected in Cumberland's Granville Ward
In a statement to 6 News, Ristevski said the party would contest state and federal elections.
"I left [OLC] the same time as Steve as I agree with his position and we are looking at the bigger picture of setting up a party that can run candidates in both state and federal elections"
"Unfortunately, Our Local Community does not provide that at the moment...Australia is missing a true conservative party and we believe we have the right team that will provide that".