The group's Judy Scrivener said the government had missed a golden opportunity in not adopting more recommendations from the inquiry, which was chaired by Northern Tablelands MP Adam Marshall.

"I am extremely disappointed," she said.

Mrs Scrivener said the education would only work if people were willing to learn.

"Most puppy farmers already operate illegally - they do not declare money and hide away, which indicates their (intentions)," she said. "Education is not going to work." 

She said she was also disgusted the government had not adopted recommendations that someone had to live on-site at puppy farms.

"We're talking dogs that are highly intelligent and actively seek out human companionship and company, particularly whelping dogs," Ms Scrivener said.

"If there is nobody there when a bitch starts birthing, if she has problems, she will die, or the puppies will die. I find it utterly disgusting to say that nobody needs to be in residency."

The animal welfare advocate said the recommendations supported also didn't touch on the number of breeding animals a facility could have.

"That is free range for the likes of some puppy farmers who have 300-plus puppies," Ms Scrivener said.

"This was a golden opportunity and the government has let it pass."

She said the government also did not support council development control terms that would ensure council approvals met the animal welfare code.

"How could they not support that?" she said. "That is the basis of what all this is all about."

Mrs Scrivener said the inquiry was a way to placate animal activists, but it had not worked.

"I think it was an attempt to placate the very fast-growing animal welfare and rescue groups who are fed up with a lack of action, motherhood statements and throwaway lines and they think this will make them go away and shut up," she said.

"This was a huge waste of money that has done the exact opposite."