Last week NSW Roads Minister Eric Roozendaal said the State Government would not follow the lead of the Federal Government and provide funding for a flyover at the Myall Way/Pacific Highway intersection.

Chairperson of the task force Patricia Michell said it was yet another setback for the group.

"When we started this process two years ago with then Roads Minister Michael Costa he agreed that if the Federal Government provided funding for a flyover, then the State would come to the party," she said.

"Subsequent letters from the five ministers who have held the position since said the same thing."

The mood had been one of optimism after John Howard's announcement last month that the Federal Government would fund $10 million for an overpass, which was duly granted in this year's budget.

"We felt confident after the announcement from Mr Howard that we would also receive funding from the NSW Government," Ms Michell said.

"The report Mr Roozendaal based his statement on is floored and outdated.

"The data and population figures it contains are incorrect."

The last estimate as to the cost of an overpass at the intersection came back at $16 million, meaning $6 million still needs to be found to complete the project.

Ms Michell said the overpass was badly needed, especially for those traveling from the south.

"It's fantastic from the north, there are no problems whatsoever," she said.

"But when you're turning right onto the Myall Way from the south it's a nightmare."

Ms Michell said it was a shame the State Government had not built the bypass during the original upgrade of the Highway.

"There was a provision for the overpass when the Karuah bypass was being built," she said.

"But somewhere in the scope of works they (the Government) must have decided it wasn't needed."

She said the task force would continue to fight until an overpass was built.

"We won't give up," she said.

"I know it sounds trite but for 'Honourable' Members of Parliament, they certainly haven't acted honourably."