Wollondilly Shire is a periurban local government area that is located on the far southwest fringe of the Greater Sydney area in New South Wales, Australia. The local government area is part of the Macarthur and Blue Mountains regions. The Wollondilly Shire is seen as the transition between Regional NSW and the Greater Sydney area, as it meets the Sydney urban area to rural areas. Wollondilly Shire was created by proclamation in the NSW Government Gazette on 7 March 1906, following the passing of the Local Government (Shires) Act 1905, and amalgamated with the Municipality of Picton on 1 May 1940.