Regional youth crime will be probed in a parliamentary inquiry as the NSW government pushes tougher law reform.
The inquiry announced on Wednesday is expected to investigate the drivers of regional youth crime and actions the state government can take to improve community safety.
Its establishment comes after pressure from the opposition as bail law reforms move through parliament.
Committee chair Edmond Atalla said regional NSW had experienced a worrying increase in crimes such as car thefts and break and enters.
"As well as looking at the root causes of youth crime, the inquiry will also examine the wraparound and diversionary services available for youth and families in the regions and rural areas," he said.
"We will consider how the NSW Government can better match services to individuals and how these services can be measured, improved and coordinated to divert youth from crime."
The government's push to make bail laws tougher as part of a youth crime crackdown has been slammed as likely leading to more children - particularly Indigenous youths - being trapped behind bars.
The Justice Reform Initiative, which includes experts, ex-politicians and top legal minds, released a report on Wednesday that pressed the need for evidence-based alternatives to locking up young people to address rising crime.
"Jailing is failing," executive director Mindy Soriti said.
"It is not working to address the social driver of incarceration and it is not working to keep the community safe."
While youth crime has been trending down for the past 15 years, recent violent break-ins in regional areas have ignited community demands for action.
The Labor bill passed the lower house on Tuesday night and will come before the upper house for a vote on Thursday.
But snap legislation was not the solution to community concerns, former federal Aboriginal affairs minister Robert Tickner said.
"There is a political need for a fix but, quick or otherwise, it's got to work," the ex-Labor politician, who chairs the reform initiative, told reporters on Wednesday.
The group's report highlights the need for community-based programs that work to intervene and prevent people from turning to crime and ending up tangled in the justice system.
It pointed to research showing early intervention programs could reduce offending among at-risk populations by 50 per cent.
"Instead of standing at the bottom of the cliff, as people fall over, we should be investing in those diversion programs, those early intervention programs," Mr Tickner said.
"That will turn young lives around."
The report recommends the need for alternative policing measures, court processes and programs that deter former prisoners from reoffending while addressing social problems that led people to cycle in and out of the criminal justice system.
Those social issues included substance abuse, domestic violence and mental illness, Mr Tickner and Dr Soriti said.
"We need to address the kind of issues that cause people to get into trouble in the first place - it's common, practical sense," Mr Tickner said.