The domain is sparse, muddy and rutted due to suspected "undesirable vehicle activity" and winter conditions, QLDC community services general manager Paul Wilson said.
He said he thought council's fencing of the domain about two years ago and the fencing of the Kawarau Jet private boat ramp six to eight months ago had concentrated activity in the lower lakeshore area.
"If the public alerts us to any damage in the area we can forward the information to the police for prose-cution.
"Otherwise, we're limited in what we can do other than more fencing, which comes at a visual cost and a cost to people's enjoyment in the summer."
Sergeant Steve Hindmarsh said Queenstown police had not been called on a regular basis to the area over the last three months.
But a Queenstown man was charged with dangerous driving after he rolled his vehicle on the reserve near Allan Cres on April 27.
At the moment, Frankton Domain facilities amount to a concrete public toilet block and an old wood- burning barbecue.
However, funds for a shelter with an electric barbecue inside, a drinking water fountain and two picnic tables were budgeted in the latest annual plan.
Landscaping to beautify the toilet block and to re-establish grass were scheduled to begin in the spring, QLDC community services project manager Russell Engelke said.
Preliminary design work for the car park on the terrace above was also in the works.
The improvements were part of a series of upgrades along the foreshore, which included willow tree pruning and traffic bollard installation.