Port Macquarie-Hastings Council will conduct a two year trial of parklets in the town centre.
The concept was first mooted by the Town Centre Master Plan sub-committee.
Parklets would see a total of four car parking spaces in the CBD repurposed during the trial to help cafes and restaurants meet the need for more outdoor dining areas.
The successful retailers will be required to fund all outdoor dining structures, planters, plants and furniture.
The cost for each retailer to participate in the trial is between $25,000 to $30,000, depending on the design and materials chosen.
A minor increase in annual dining fees paid to council would also be levied.
Councillor Geoff Hawkins said the initiative was designed to further activate the CBD.
"We are constantly trying to activate and add colour and movement within the town centre," he said.
"The parklet concept helps overcome some issues where traditional outdoor dining would be difficult, including space, access or adjoining fixed areas.
"I think parklets could be a potential solution to a retailer looking to outdoor dining.
"The two year trial will give the retailers a good look at the parklets across the four seasons and see if there are seasonal issues associated with the parklets."
The two year trial will give the retailers a good look at the parklets across the four seasons and see if there are seasonal issues associated with the parklets.Cr Geoff Hawkins
Cr Hawkins said the intention of the parklets is for outdoor dining only which means those spaces will no longer be for parking.
He said councillors 'value every car parking spot and would try to maintain the maximum number of (car parking) spots as possible'.
A two year trial, he said, is not just beneficial for the retailer but also for council to gauge what impacts the loss of four car parking sports could have in and around the CBD.
He said the results of the trial could also assist in the formulating of council's parking strategy.
"We are not locked into something though, it is a trial and on a scale that does not have a massive consequence on council," he said.
But Mayor Peta Pinson outlined her concerns about loss of car parking spots during a debate on the topic at council's May 16 meeting.
"It is a really innovative concept and I love the idea and think it is fantastic," she said. "But I can't support it. We are really struggling for parking spaces now; it is a loss of a total of four spaces for the duration of the trial."
Cr Lisa Intemann also said she was concerned about the commercialisation of car parking spots.
Cr Lee Dixon said anything that activites the CBD is a positive thing to do.
"This is an excellent idea," he added.
The general manager will provide a future report to council presenting the outcomes of the trial process for consideration.
There was no start date for the trial.