A project which resulted in the removal of a controversial colonial figure's statue has been nominated for a national local government award.

City of Hobart Council's "Crowther Reinterpreted" project, which saw the eventual removal of the William Crowther statue from the city's Franklin Square, has been nominated for two categories at the National Awards for Local Government.

The project, which began in 2021, has been nominated under Aboriginal and Torres Strait Islander Recognition and Arts & Culture categories.

Following its nomination, Council's acting lord mayor Dr Zelinda Sherlock said the nomination presented "an opportunity for the city to share their story with the rest of Australia".

Dr Sherlock said the council followed an extensive and thorough process of consultation and planning, and by a majority agreed the statue was to be removed.

"It was a growth moment for our city, and we recognise that not everyone agreed, but democratic principles were at the heart of our decision-making process," Dr Sherlock said via Facebook.

"We also listened to continued requests from the Palawa community for action and started the process of generating discussion and raising awareness through public artworks in 2021.

"Our objective from the start was to bring the community along with us on this journey, consulting with Palawa and non-Palawa community members, which ultimately led to the approval for the removal of the bronze statue."

Controversy surrounding the statue stems from William Crowther's mutilation and theft of Aboriginal man William Lanne's skull in the late 1860s.

The statue was toppled overnight in May last year, the day before a tribunal decision was set to be handed down upholding Council's decision for its removal, with its plinth removed months later in September.

Following its removal, Tasmanian Aboriginal Centre campaign manager Nala Mansell said her preference would have been for the plinth and feet of the statue to remain as is.

"I think especially from an artistic point of view what a great opportunity it would have been for the statue to be left cut off," Ms Mansell told The Mercury last year.

Following its nomination, Local Government Association of Tasmania president Mick Tucker acknowledged the varying views on the project however said council's success should be highlighted regardless.

"We know the statue is a very, very contentious issue but when a council is nominated for a national award, we put it on our LGAT (Facebook) page. There is no vetting process," Mr Tucker said.

"We support every single council in Tasmania.

"They've made the award, rightly or wrongly, people may have an opinion on it but we treat everybody equally."

Despite acknowledging the "illegal vandalism" preceding its removal, Dr Sherlock said the statue's removal process "created a legal precedent that acknowledges how Palawa culture and associations may be considered in significance assessments, into the future".

However, City of Hobart councillor Louise Elliot disagreed with Dr Sherlock's perspective, claiming the council's actions "deeply divided the community which is nothing to be seeking praise for".

"Seeking awards for actions that have upset many people and destroyed the council's reputation when it comes to fairness and heritage protection shows how out of touch the council is," she told The Mercury.

"The process was a smear campaign that saw the statue vandalised under the guise of it being 'artwork' and promoted false and unsubstantiated information.

"The whole community would have gotten behind adding more artwork and interpretation to our city that focused on Aboriginal perspectives and people. Instead, one group has their heritage destroyed."

Following the statue's toppling, the Tasmanian Government's Aboriginal Advisory group chair, Uncle Rodney Dillon, supported suggestions for Aboriginal recognition in Hobart's Franklin Square.

"And recognised as the first people, and recognise the history so we can understand and go ahead (and) be able to work together, because we don't seem to be able to do that very well," Mr Dillon told National Indigenous Times.

Crowther Reinterpreted can be voted for via the National Awards for Local Government platform until Monday 28 April.