After just 18 months in Parliament, former water minister Nathan Rees was sworn in as Premier last night after a dramatic session in which Morris Iemma quit politics and former treasurer Michael Costa was blasted out of cabinet. Carmel Tebbutt was sworn in as the State's first female deputy premier.

The 40-year-old former garbage collector and greenkeeper insisted Mr Iemma was not pushed, but praised his courage for doing the right thing and resigning from the leadership.

Earlier yesterday, Mr Iemma's powerful right-wing Centre Unity faction had turned on him over his plan to dump several senior figures from the ministry, and the former premier said he would not lead a cabinet ''foisted'' on him.

''They didn't want to do it my way they can get on without me,'' Mr Iemma said, as he became the first NSW Labor premier to be dumped in 117 years.

Mr Rees the member for Toongabbie pledged to restore public confidence in the state Government and said people were right to feel angry about failures in health and transport.

''You are right to feel frustrated, you are right to feel annoyed, you are right to feel disappointed, on occasions, you are right to feel angry,'' he said. ''On that basis I say this to you we need real change, and that real change starts today. Be under no illusions, we understand how disappointed the community has been with many of our efforts.''

Conceding he was short on parliamentary experience, Mr Rees said yesterday that he had plenty of life experience, including working as a ''garbo''.

''I've done lots of different things since I've left school and it's that life experience that people value probably a little more than parliamentary experience,'' he said.

Prime Minister Kevin Rudd said Mr Rees had what it took to deal with the challenges facing the state Government.

''I look forward to working closely with Nathan, Carmel and the NSW Government on our shared challenges in education, health, climate change and water,'' Mr Rudd said.

Before entering Parliament, Mr Rees was chief of staff to disgraced former minister Milton Orkopoulos, who is serving a nine-year prison term after being convicted of child sex and drug offences.