At a council meeting yesterday, councillors voted 12-1 for freedom camping to be restricted to self-contained vehicles only within the Dunedin boundary.
Cr Lee Vandervis voted against the proposal.
Under the rule, all non-self-contained campers would be forced to stay in camping grounds or on non-council-owned land.
The decision came after two public submissions criticising the current state of freedom camping in the city were heard.
The recommended option would be one of three to be put out for public consultation next month.
The decision follows a change of tack by councillors, who were widely criticised for suggesting the creation of camps at Rotary Park in Highcliff, Brighton Surf Life Saving Club and at Puddle Alley near Invermay would solve camper overflow problems at Ocean View and Warrington.
Dunedin City Council infrastructure and networks general manager Ruth Stokes said while the current bylaw, which allowed all types of freedom camping at Warrington Domain and Ocean View Reserve, was nationally considered best practice, it was not without challenges.
Council staff had received more than 300 complaints about freedom camping demand at Warrington Domain and Ocean View Reserve since Christmas, she said.
When questioned by Cr Aaron Hawkins, Ms Stokes acknowledged the proposed change would not be considered best practice by the national freedom camping forum because it did not provide opportunities for all campers.
A recommended option was necessary when putting a draft bylaw out for public consultation. However, public consultation meant the future of freedom camping in Dunedin could involve the provision of additional sites for non self-contained vehicles or increased enforcement and infrastructure under the current rules.
Cr Christine Garey said people had been ''let down by central government'' when the 2011 Freedom Camping Act was enforced and it was important to consider the rights of freedom campers as well as communities when discussing the issue.
''They are in general responsible visitors to our country and city.''
A bylaw restricting freedom camping to self-contained vehicles on Otago Peninsula eased tensions between campers and residents.
The same bylaw for the city could have the same outcome, she said.
Cr Hawkins said it was clear freedom camping problems in the city were caused by ''unmet demand'', which meant maintaining the current bylaw was not an option.
The community needed to decide ''how welcoming we are prepared to be, and to what degree do we invest in that welcoming'', he said.
Public submissions would be open from July 7 to August 4.
The amended bylaw would come into force by the end of September and before the start of the camping season.
