CHIEF executive Susan Law has resigned from the helm of Armidale Regional Council (ARC) after a tumultuous few months.
Ms Law tendered her resignation on Tuesday, effective July 30, and said she would work with interim administrator Viv May to ensure a smooth transition.
"This has been a particularly difficult period for me personally," she said.
"I will continue to be a resident of Armidale and do hope that the council can mend their differences and move forward to deliver positive outcomes for the Armidale region."
The resignation comes a fortnight after five councillors won a NSW Land and Environment Court battle against Ms Law and ARC to block a vote to terminate her employment.
Both ARC and Ms Law were ordered to pay the legal costs of councillors Ian Tiley, Margaret O'Connor, Debra O'Brien, Dorothy Robinson and Jon Galletly.
Ms O'Connor said the saga had caused huge stress and financial loss.
"There's so much to get on with now to restore good local government for the Armidale region," she said.
"First, is to dispel the nonsense story going around that there is a problem with the councillors getting on with each other."
The council has been suspended for three months as a result of the court case.
Northern Tablelands MP Adam Marshall said Ms Law's resignation was the right decision and an important step toward healing significant rifts in the council.
"The vast majority of councils across NSW don't end up at 20 paces in a court room, they act as adults and resolve these matters," he said.
"It was incredibly disappointing and infuriating for the community to witness what has gone on for the last 18 months and that's why this is the best and most sensible outcome.
"Now the chief executive has resigned it provides an opportunity for a breath of fresh air and a refocus in the organisation to serve the community."
The interim administrator will choose the next chief executive, the council is expected to be reinstated in September.