Councils should not be expected to foot the bill for plans to ban certain types of rubbish from landfill, the Local Government Association (LGA) has said.
And it said councils are reluctant to fine householders for using the wrong bins.
Environment Secretary Hilary Benn launched a consultation on stopping an array of different types of rubbish - such as food waste or recyclable materials - going into the ground.
The Environment Department (Defra) and the Welsh Assembly are looking at the case for landfill restrictions on paper and card, food, textiles, metals, wood, garden waste, glass, plastics, and electrical and electronic equipment.
LGA chairman Gary Porter said the Government must not leave councils to bear the financial brunt of such a scheme.
He said: "Defra must not create a situation where every householder in the country is forced to have a separate bin for their food waste. It must be up to councils, working with their residents, to find the best ways of cutting rubbish going to landfill.
"Councils want to throw less rubbish in the ground because it is good for the environment and good for the council taxpayer.
"While councils are paying ever more to the Government in landfill tax, they cannot also be expected to pay for building and running new plants to sort banned materials and process food waste.
"Defra needs to think carefully about where the money to pay for a landfill ban will come from and how the ban will be policed. Councils do not want to be put in a position where they have to fine people for putting their leftovers in the wrong bin."
Mr Benn visited Bywaters Materials Recovery Facility (MRF) in Bow, east London, to launch the consultation.
