A small NSW town has been left with only two hours a day to collect their mail and parcels after the couple owning the Glencoe Post Office broke up.

The post office in Glencoe, situated about 20km south of Glen Innes, serviced the local village for their mail, banking and library needs before the couple split ways.

Australia Post has refused to reissue a license, leaving locals fuming about having to collect their mail and parcels during the reduced hours of 9am to 11am from Monday to Friday.

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The man owned the building but his partner owned the license which she cancelled when they broke up, leaving the man unable to get an Australia Post license to keep it open for longer hours.

She hasn't been seen since, says Glencoe resident Marjorie Leggett.

"We no longer have a post office basically," Ms Leggett said.

"It's just outrageous. How many people can pick up their mail between 9 and 11am? It's ridiculous."

Australia Post confirmed in a statement that the previous licensee had decided to leave, and that the hours had been reduced for services such as parcel collection and banking transactions.

The library, which was a simple pick-up and drop-off community hub of exchange books located inside the post office, is no longer available.

Australia Post has asked residents to redirect their parcel deliveries to Glen Innes Post Office, open 9am to 5pm from Monday to Friday, if they are unable to collect their mail during Glencoe's reduced hours.

But Ms Leggett said travelling into Glen Innes was an inconvenience that costs extra in petrol and time for the people in Glencoe.

"I go into town (Glen Innes) maybe once a week, once a fortnight. That is just the biggest load of crock, we need to have a service in Glencoe," she said.

Ms Leggett said questions remain unanswered over why the people of Glencoe cannot have a postal mail service to their homes "like everyone else in Australia".

"Mail deliveries go past my door every day out of town," she said.

"People who live out of town out of Glencoe on their farms get mail delivery. People in Glencoe get nothing. It's the craziest situation."

Ms Leggett also queried why Australia Post could not give residents a free postal box if they were unable to deliver to their home mailboxes in the small township.

"But mostly why can't they reissue a licence?" Ms Leggett said.

It comes as Australia Post seeks to increase the cost of their postage stamps by 10c from $1.10 to $1.20, with the changes set to come into force by January 2023 if successful.

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