The Vincent Community Board heard the two opposing views yesterday when it considered a report on the future management of the domain, which is next to the Fraser River.
The board decided to close the domain for camping but keep it open as a scenic spot for visitors.
Central Otago District Council parks team leader Ian Mann said although the reserve was popular with campers, it did not meet campsite service standards.
At the height of summer, there would be about 100 orchard workers and 50 holidaymakers camping there.
Mr Mann said the site had previously been managed as a camp site by an on-site caretaker Gordon Pearce, who died in March this year, and his wife Hazel.
Jeremy Hiscock, who lived near the domain, believed it attracted campers who were drug-users, who used it as a party site, who drove too fast and who threw rubbish around.
Mrs Pearce said she and her husband considered the camp ''a little bit of heaven'', denying it was a ''hotbed of crime''.
Board member Stu Millis said it was real shame to close the domain for camping but the board had little choice.
Fellow member Barry Hambleton said the area should be made into ''a really good picnic site'' if camping was going to be banned.