With the coming into effect of the "Local Government Act, 1906", the Borough of Gosford became the Municipality of Gosford, as well as the power of Councils to petition the government to dissolve and merge with other Councils. In July 1907 a petition from the Municipality of Gosford was published in the Government Gazette requesting to merge with Erina Shire, the first Council to do so under the 1906 act. However, owing to objections from the Wyong Progress Association and the Erina Shire Council, a public inquiry was established by the Secretary for Public Works, where it was heard that the Gosford Municipality was in debt and desired to merge with Erina to resolve its financial issues. Despite objections, the commissioner returned a recommendation for the merger and a proposal for a six-ward model was considered and accepted at a conference held on 30 September 1907. The proposal for a six-ward Erina Shire with Gosford becoming F Riding was subsequently proclaimed and came into effect on 23 January 1908. The new Shire Council Chambers on Mann Street, Gosford, were officially opened on 4 May 1912.