Faigan's, the sole cafe in Millers Flat, across the Clutha River from SH8, want to erect two hoardings beside the highway to inform motorists about the cafe and bring people into the township.
A commissioner's hearing was held in Roxburgh yesterday because the proposal is a non-complying activity within the Operative Central Otago District Plan.
Gary Rae, of Canterbury based Irricon Resource Solutions, was the commissioner.
The district plan says hoardings are non-compliant because they are commercial, not attached to the site and can harm the area's natural and physical qualities.
Faigan's Cafe co-owner Juanita Garden told the Otago Daily Times a hoarding was necessary not only for her business but to draw people into the township.
"Millers Flat is off the main highway, so people don't know there is a township.
"We need an indication that there is a township across the road."
One hoarding would be placed south of the Millers Flat bridge and the other north of the bridge, both on private property beside SH8.
The property owners had given consent for the hoardings.
The original design of the sign had a safety-themed message, a drawing of the store, the store's name, the village's name and a "Turn right/left in 2km" message.
A submission by Kenneth Bain, of Roxburgh, with 49 other signatures said the sign would create awareness of the cafe and also Millers Flat.
The NZTA originally made a neutral submission to the hearing, recommending removing the township name and the store drawing from the sign.
But an updated submission from the agency's consenting and community principal planner, Richard Shaw, said after reviewing reports from the applicant and the Central Otago District Council's planning consultant, the agency would approve including the town's name but take out safety themed messages, to focus on the cafe activity and directions.
"This would result in a simpler, more readable sign for the speed environment," Mr Shaw said.
A council spokeswoman said the commissioner's decision would be made public within 15 days.