JIM Donovan from Action for Public Transport called the proposal "trash".
"It's not really relevant to our needs, and it will be very expensive," he said.
"There's not enough density [of people] there.
"There's plenty of people but they're so spread out it would have to be a huge network to cover it."
Mr Donovan advocated greater investment in buses connecting western Sydney business centres.
Parramatta Chamber of Commerce president, Stephanie Dale, and vice-president, Roger Byrne, (pictured) were a little more supportive of light rail.
"We need something," Ms Dale said, "but I don't know that the light rail is a total solution."
"I think we need to look further afield at a combination of transport options."
Ms Dale and Mr Byrne both agreed that it was a positive step by the council to fund the initial $1 million feasibility study for the light rail option.
"I think it's an acceptable use of ratepayers' money," Mr Byrne said. "We need to get something happening in Parramatta."
Federal Parramatta MP Julie Owens also believed it was "completely appropriate" that the council take a lead role on the project.
"Getting from one part of western Sydney to the other is just too difficult," she said. "For years there's been an idea in western Sydney that to do business you go in to Sydney — that's not right."
But Ms Owens did not necessarily agree that the light rail network should be a transport priority, preferring to see the Carlingford rail line completed.