The New South Wales Aboriginal Land Council has urged the State Government to stop prosecuting Aboriginal people for cultural fishing, following the withdrawal of a charge against Yuin Elder Kevin Mason.

The NSWALC called for the immediate moratorium this week after a charge of resisting arrest against Mr Mason was dropped.

The 76-year-old Elder was chased into the sea by a Fisheries NSW officer at Narooma in 2018 because of a small bag of abalone which was for his family, not for commercial purposes.

Crown solicitors on behalf of the NSW Department of Planning, Industry and Environment appeared in Batemans Bay Local Court and withdrew the charge.

NSW Aboriginal Land Council chairman Danny Chapman said the treatment of Mr Mason and other community cultural fishers across the state was traumatic.

"Despite the New South Wales government's commitments to reduce incarceration rates of Aboriginal peoples, recognize Aboriginal people's inherent rights and interests in the sea, and transform the way government and its agencies work, it continues to criminalise Aboriginal cultural practices," he said.

"Our community members face financially debilitating fines of tens of thousands of dollars, are prohibited from even going near the water, and the impact on them and their families is horrific.

"The new South Wales government has had more than a decade to work with us to get this right, but hasn't."

Mr Chapman said the government was harassing people trying to feed their families and communities.

Under NSW laws passed in 2009 Aboriginal people are allowed to practice cultural fishing rights, but the failure to commence aspects of these provisions is now the subject to a parliamentary inquiry.

New South Wales Agriculture Minister Dugald Saunders said the governmente was working to support sustainable Aboriginal cultural fishing.

"We actively support increased access for Aboriginal cultural fishers through the Aboriginal Cultural Fishing Interim Access arrangements, which allow for extended take and possession limits," he said.

"For example, for culturally important species such as Abalone, cultural fishers can take 10 abalone, which is five times higher than the recreational fishing bag limit."

Mr Saunders said the NSW government had committed to a review of existing prosecutions involving Aboriginal people to ensure only serious offences are pursued.

The Department has issued more than 140 Aboriginal cultural fishing Section 37 permits since January 2010, which allow Aboriginal fishers to take significantly higher catches of culturally important species within a set period, using various fishing techniques.