The Queenstown Lakes District Council has been urged to post signs to indicate where freedom camping is permitted.
There is evidence signs prohibiting camping have not worked.
The Rental Vehicle Association of New Zealand (RVA) submitted that QLDC's signposting requirements had to be kept so infringement charges would not be undermined.
RVA called for a "realistic and legal level of infringement" to become a real deterrent, and said enforcement officers and parking wardens needed to have their powers widened.
QLDC's draft freedom camping strategy revealed a "no camping" sign did not work, in a test at the lakefront One Mile Powerhouse car park from January 27 to March 23.
While 321 vehicles stayed at the 40-space car park in the the four weeks no sign was displayed, 341 vehicles stayed in the four weeks the "no camping" sign was there.
QLDC community services general manager Paul Wilson told the Queenstown Times the test showed signs were not effective.
"People have a perception that when they see other campervans parked, they feel it's OK to do the same . . . up and down the country."
Mr Wilson said the draft strategy instead proposed to empower staff and communities to keep tabs on remote sites and parks.
They would issue infringement notices for camping in prohibited areas or without self-containment in permitted areas.
The draft also pledged to raise infringement penalties from $40 to $100.
The submission from RVA was not the only one calling for tougher penalties.
Lake Wanaka Tourism (LWT) marketing and communication co-ordinator Tess Hellebrekers submitted that even if the infringement fine was increased to $100, "it is still quite low, and unless it is collected on the spot, most campervan users will leave the country without paying their fine, unless you have the support of the campervan companies to collect the fines for you".
Ms Hellebrekers said while LWT and the Lake Wanaka I-Site Visitor Centre were supportive, I-Site staff and visitor advisers should be kept informed of permitted freedom camping areas.
The New Zealand Motor Caravan Association Inc (NZMCA) supported the draft plan's proposal to increase the visibility of existing dump stations and install three new dump stations in the district.
NZMCA resource management co-ordinator James Imlach said responsible freedom camping could only be achieved in a certified self-contained vehicle with onboard facilities to contain waste and rubbish.
Mr Wilson said: "People are welcome to freedom camp as long as they have toilet facilities on board."
At least 18 public submissions were received by QLDC.
The draft strategy will be tabled for adoption at the next full council meeting in June.
