A dozen councils will go to upcoming elections with no Liberal candidate after the party failed to submit nominations in time.
Opposition Leader Mark Speakman described the debacle as "the worst act of mismanagement that I can think of in the organisation's history" in an email to colleagues on Thursday.
Officials confirmed the party missed Wednesday's 12pm deadline to nominate up to a dozen candidates representing some of the biggest council areas in NSW.
The party's state director Richard Shields admitted the mistake, blaming a lack of resources for the blunder and apologised to the Liberal-endorsed candidates who had not been nominated.
Deputy Liberal leader Natalie Ward said she was "ropeable" about what had been "a monumental stuff-up".
"This is unacceptable for our members, it's unacceptable for the candidates (and) it's unacceptable for the voting public that support our party and want to vote for a Liberal member," she told Sydney radio 2GB.
Liberal Lane Cove mayor Scott Bennison announced he quit the party on Thursday and would be running as an independent in the upcoming election.
"I'm just sick of all the factional rubbish that happens within the party," he told 2GB.
Describing internal party politics as "absolutely hopeless", Mr Bennison said the blunder should never have happened.
"We've had three years to sort this out, and we still stuff it up ... It's just unbelievable."
Northern Beaches, Lane Cove, Camden and Campbelltown councils are among those thought to be affected in Sydney, while voters might also not be able to pick candidates in the regional local government areas of Wollongong, Shoalhaven and Blue Mountains.
Mr Speakman has also called on Mr Shields to resign.
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