The companies behind two controversial projects are unlikely to receive compensation for the millions spent on their proposals.

The planning amendment bill was only introduced to the assembly on Wednesday by planning minister Mick Gentleman who said it was needed to ward off any legal challenges by the companies behind the waste disposal projects.

As well, Mr Gentleman said the bill had to be rushed through to prevent the ACT Planning and Land Authority from giving approval to a proposal for a waste recycling plant that is currently being assessed.

"Due to legal risks the government was not able to take the bill to public consultation," he said.

"The risks also made it difficult to advise the assembly of the bill ahead of its formal introduction.

"These risks include there being a development application for a new waste facility in Fyshwick before the independent Planning and Land Authority.

"Further there is a risk that the introduction of this bill might trigger proponents to seek other means of having the development approved perhaps through the courts."

The Liberals were only made aware of the bill on Wednesday. The Liberals supported the bill but criticised the government for not following the normal procedures. Opposition whip Jeremy Hanson said he did not want it established as a precedent.

"It is not good form, it is not good process, it is not good for democracy indeed if we are to table and debate bills in the same sitting," he said.

"This is not something the opposition will support lightly, however given the pickle that has been created it is a mess that needs to be sorted."

The law prohibits the ACT Planning and Land Authority from accepting applications to build new waste management developments in Fyshwick. It includes applications for recycling plants, landfill sites and hazardous waste facilities.

Existing applications before the authority would also be rejected.

There are two proposals affected by the law: Capital Recycling Solutions' plan to build a waste facility, that would process up to 300,000 tonnes of waste a year, on Ipswich Street and Hi Quality Group's resource recovery plant, that would handle 1.1 million tonnes a year.

The former had submitted a development application for their proposal.

Mr Gentleman said the government had received advice that it would not be required to pay compensation to the companies, but he said the government would consider the merits of any claims received.

"Given there are only two very large proposals affected directly by this legislation, I am confident that there will not be a widespread impact from this ban," he said.

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Mr Gentleman said a review would be undertaken as to where new waste infrastructure projects in Canberra could be put in the future.

The review would also investigate the types of waste facilities that could be developed in Fyshwick in the future.

The bill had tripartisan support and followed election commitments from the three parties.

There was widespread community opposition to the project both the Fyshwick Business Association and the Inner South Community Council ran campaigns against the proposal.

The ban is a huge blow to Capital Recycling Solutions who fought for three years to get the project off the ground. The company had previously won a court battle against the planning authority who revoked an approved application to be a concrete slab on the site. The slab was the first step in the proposal to build a waste management facility.

Capital Recycling Solutions director Adam Perry declined to comment while the company explored its options.