Sex workers' representatives and community health organisations have accused some local councils in New South Wales of bullying legal brothels and driving the sex industry underground.

A sex industry seminar in Sydney has heard many councils have introduced restrictive zoning laws to stop legal brothels being built.

Maria MacMahon is a policy adviser from the AIDS Council of NSW and says illegal brothels have emerged to take the place of legal businesses.

"They've clearly driven operators underground in a whole range of local government areas," she said.

"The patchwork of policies around Sydney alone means that we have black spots, where it is virtually impossible to get a DA for a brothel and run the business lawfully."

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