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Koalas in this southern NSW reserve are booming, despite their endangered status across the state

Koalas have been spotted outside Narrandera's koala reserve, along the banks of the Murrumbidgee River. (ABC Riverina: Shannon Corvo)

There is hope a small koala population in southern New South Wales will help bolster the country's shrinking numbers.

Koalas have been listed as endangered in the state, as well as in Queensland and the Australian Capital Territory.

But a colony at Narrandera's koala reserve, which exists within the Narrandera Nature Reserve, is bucking the trend, thanks to the hard work of locals.

Ken Murphy is the former chairman of the Koala Regeneration Centre Supervisory Committee.

He said koalas were introduced to the town's reserve in 1972, after decades without a single sighting.

"The idea was to try and regenerate koalas back into the natural surrounds, along the river," Mr Murphy said.

"A lot of work was done; it took about seven years after the reserve was gazetted before actual koalas came in.

Ken and Gayle Murphy walk along the Narrandera koala reserve every day. (ABC Riverina: Romy Stephens)

Koala populations around Narrandera were likely decimated in the early 1900s due to habitat destruction and fur trading.

It is estimated the colony has jumped from just 19 koalas to more than 200 in less than half a century.

Mr Murphy and his wife, Gayle, walk alongside the reserve every day to spot koalas.

Ms Murphy said in Narrandera they just "let koalas do what they do naturally."

"We don't touch their environment. We don't try and change their environment; we just leave it as it is, and they know how to live in their environment."

Lindsay Hayes says she has spotted koalas in her backyard, outside the reserve boundary.  (ABC Riverina: Romy Stephens)

Expanding populations

Lindsay Hayes is a volunteer wildlife carer who helps conduct annual koala counts at the reserve.

She said surveys have shown the disease-free population is increasing, and she has even spotted koalas in her own backyard, outside the reserve's perimeter.

"They weren't there the previous years, so the population is increasing.

"They're moving up and down the river. I've actually got two colonies here; two female colonies, and one male colony which I share with my neighbour."

Mapping shows extensive prime habitat, in red, around Narrandera and along the Murrumbidgee River. (Supplied: Australian Koala Foundation)

Calls to protect habitat

The Australian Koala Foundation has carried out mapping which shows extensive amounts of prime koala habitat throughout Yenda, Narrandera and along the Murrumbidgee River.

Foundation chair Deborah Tabart believes not enough is being done to protect and expand habitat and that legislation to care for koala habitat is needed.

"We Australians should be ashamed that we now have the Great Barrier Reef and the koala as endangered species, and they are some of the greatest icons in this world.

"It's shame on our leadership."

Environment minister Sussan Ley says a specific koala protection act is not needed, because the species is already protected by the current environmental laws.

She said $10 million in funding is being spent on community projects, which support koala conservation.

New hope for NSW koala population (Romy Stephens)
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