Dunedin City Council parking services team leader Daphne Griffen said due to a change in government legislation in 2005, the council had not been able to issue tickets for parking on grass verges for three years.
She said traffic regulations had been put in the Transport Act or the Land Transport Act in 2005 but the provisions to penalise people for parking on grass verges was not included.
She said not many people knew it was legal to park on verges, although vehicles parked on verges which were on council reserves were illegally parked, as this was seen as parking on a council reserve.
But by the middle of next month, a new council bylaw would make it illegal to park on the verges, making it liable for a $40 ticket.
Mrs Griffen said the council had wanted to issue tickets for vehicles parking on grass verges but was bound by the law.
The problem had got worse over the past six months.
Hundreds of people parked on grass verges throughout the city and, as no ticket could be issued, they continued to do so.
People parked their vehicles for days and got away with it, as they did not want to pay for parking in the city.
Areas which were particularly bad included parts of Corstorphine, Anzac Ave, Parry St, Royal Tce and Constitution St.
The parked cars damaged grass and trees, costing the city money, she said.