PWD are demanding the NSW government pay damages of $15 million to residents of the licensed boarding house and are also calling for NSW Police to establish a taskforce to investigate allegations concerning the lodge.

Funded by the NSW government to provide individual advocacy support services to boarding house residents, the organisation has spent several years expressing concerns for the safety and well-being of lodge residents.

"We believe these vulnerable people have experienced gross discrimination, and that alleged crimes against them have not been as thoroughly investigated as they would have been, had the same alleged crimes been committed against people without a disability," PWD President Jan Daisley said.

"Reports from former staff members, residents and their families allege that people with disability at Grand Western Lodge frequently experience beatings, over medication, sexual assault, harsh punishment, prolonged segregation, solitary confinement and financial exploitation...

"It is scandalous that the Department of Ageing, Disability and Home Care (ADHC) had left these people with disability in such a dangerous situation for so many years..."

The ADHC is responsible for monitoring the standards of licensed boarding houses and ensuring the health, comfort, safety and proper care of people with disabilities living in them is met.

PWD claims it has made numerous attempts to provide independent advocacy support services to people living at the lodge since 2002 with limited success.

During one visit in the middle of last year, PWD alleges its staff members were threatened with legal action, by licensee Adrian Powell, if they continued to try to access residents to inform them of their rights.

Supporters of Mr Powell, and staff at the lodge, claim advocates are already available to residents at the lodge, but the Blayney Chronicle understands they have not been independently appointed by a third party.

PWD Spokesperson Matthew Bowden told the Blayney Chronicle that residents who were removed from the lodge have taken up PWD's advocacy service since the left the lodge.

"They appear to be happy with the support we're providing," he said, despite reports from inside the lodge that the residents wanted nothing to do with PWD while they lived there.

He defended the removal of the residents and said PWD had been calling for their removal and welcomed it.

"It is never our intention to cause distress or upset people.... PWD believes it (the removal) was absolutely necessary."

Mr Bowden said "the people we met with were really happy with their new homes and have settled quiet quickly... nobody has said to us that they wanted to go back."

Police investigations into allegations surrounding the treatment of residents at Grand Western Lodge are understood to be on-going.