Casey Freeman and her three children - Isabella, aged 8, Ruby, 6, and three-year-old Scarlett - were last week told by a council ranger to remove her hand-designed signs posted a month ago on power and street poles.

The council says that driver safety was behind the reason to have the signs removed.

"I received a call from a ranger and was given two weeks to remove all our koala signs from the peninsula or else the council would take them down and destroy them," Ms Freeman said.

"My girls and I were devastated on hearing this. We were hoping our signs would remain until the coming spring and summer, when the koalas are more mobile in these identified locations. We were going to continue to reinforce the message to the community and visitors."

The council's assets manager John Maretich said that driver road safety was taken very seriously in Port Stephens.

"The Transport for NSW (TfNSW) has standards relating to roadside signage in particular regulatory signage. The regulations are designed to minimise distractions for drivers," he said.

"The council is working on a number of projects to both raise awareness with motorists and also to minimise road strike incidents with koalas. The council has spoken with the community member and is providing support to find suitable locations for the signs."

Ms Freeman said that she was seeking community support to raise awareness of the major roadkill locations and to help protect the Port's dwindling koala population.

"I am one of the 200 Port Stephens koala volunteers and my three girls and I feel strongly that we should do whatever we can to try help our precious koalas," she said.

"Koalas on the Tomaree peninsula have now reached the point of critical population collapse. We are basically running them over faster then they can multiply."

Ms Freeman said that came up with the concept after hearing about the current financial situation of Port Stephens Council.

"I felt I could personally make a difference during these difficult times," she said.

"My idea was, using the best information available and in an eye catching way, we would identify the main koala roadkill spots and place koala warning signs for unsuspecting motorists.

"These locations are part of the main koala corridor on the peninsula, it's where they regularly cross the roads and where the most road deaths occur. Port Stephens Drive seems to be the busiest for koalas.

"Using social media I engaged the community and I received overwhelming support and positive feedback. I have also started a Go Fund Me page to raise the necessary money to be able to create more permanent signage [with the council approval]."

Meanwhile, a recent state government investigation into vehicle road-strike hotspots has identified Port Stephens Drive as one of the worst koala road-strike sites in NSW.

Following this, a further study was undertaken to determine options and costs associated with mitigating and preventing koala road-strikes along Port Stephens Drive, resulting in a $845,000 council grant to reduce koalas being killed or injured by vehicles.

Mr Peart said the study identified that building a culvert to allow koalas to move under the road and installing exclusion fencing to keep koalas off the road were the most efficient and effective solutions.

"From 2010 to 2020, 89 koala records have been identified along Port Stephens Drive, including 11 vehicle strike fatalities, five vehicle strike injury rescues and 11 rescues," Mr Peart said.

"This grant funding is allowing council to install 2km fauna-proof fencing on both sides of Port Stephens Drive, retrofit 850 metres of koala-proof fencing to the existing Horizons Golf Course fence, build a 20 metre long box culvert as fauna underpass near southern boundary of the golf course and add koala pavement painting and roadside signage indicating koala speed zones."

Mayor Ryan Palmer says koala protection and conservation has been a top priority for the council for many years.

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