The Queenstown Lakes District Council issued Shane Neary with the letter in late June saying it won't grant him concessions anymore because it wants to be consistent with Freedom Camping rules.
This is despite Local Government New Zealand guidelines recommending councils avoid using the rule against people who are genuinely homeless.
Shane Neary, 25, has been homeless since he was 15 years old.
He has lived with his dogs - Ralph who has cancer and Diesel - in his car in Queenstown for years.
Up until recently, the council let him.
But then he received a letter on June 29 saying that was all coming to an end.
He tried contacting the council, but said he couldn't get any information about why the letter was sent.
He said he's been told that if he were sleeping rough, it wouldn't be a problem - but so long as he has a car, the council is sending him fines and telling him to move along.
"They told me to sleep on the street if I want to be left alone, and I can't sleep in my car or the harassment will keep on coming," he said.
Sleeping on the streets did not appeal, when temperatures were dropping below zero, he said.
The council's by-laws were a response to tourists not respecting the environment they camped in.
The rules require someone to have a self-contained vehicle with a toilet, such as a campervan, and only stay a maximum of two consecutive nights in one spot.
Neary can't afford a campervan, and to park his car at a campsite could cost him between $100 and $320 a week.
"I'm on the benefit, struggling, and I'm a homeless person," he said.
"I'm not a freedom camper. I shouldn't be treated like that.
"I'm just trying to do the best I can and trying to survive and stay warm."
Neary said he has told all of this to the council, but felt like it had fallen on deaf ears.
"They know my situation - they know I have no money and am living on a benefit."
He said it's depressing the council suggested getting a self-contained vehicle or paying to stay at a campsite.
The council had suggested he park out of town, he said, but that came with its own problems, including disgruntled residents and no toilets.
Latest figures for Otago and Southland show there were more than 400 people on the Ministry of Social Development housing register waiting for public housing.
Neary said he's struggled to get emergency housing.
But late yesterday after he spoke to RNZ, Neary said he received a phone call, out of the blue, from the Ministry of Social Development offering help.
Ultimately, Neary wants a home to live in, with his dogs.
But until that happens, he has a message for the council.
"Leave me alone. Let me live my life the best I can in my car. I shouldn't have to sleep on the street and be cold, to be left alone."
He said the experience is taking a toll on his mental health.
The council declined an interview.
In a statement, it said: "We are not officially aware of any homeless people sleeping in cars in Queenstown although we are aware of anecdotal comment that this may be happening".
This is despite sending a letter, on a council letterhead, to Neary about living in his car.
It also urged people in this position to contact services such as The Salvation Army or Work and Income for help.
"If it's a reality for more people, we again encourage them to seek assistance from the appropriate organisations in the district," it said.
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Comments
Typical ... QLDC will keep going at Shane until he breaks, instead of trying to help the guy out.
I mean to say, it's not a good look having some guy sleeping in his car at one of the top tourist destinations in NZ ... it's just not on, thousandsof international tourists will take stories like this back to their home countries and it'll cause havoc with the tourism and hospitality industries, shocking to think about how much money the millonaires in Queenstown will be missing out on .... absolutely shocking, I feel I now need to see a Tui while I sit in my deck chair and watch non-existant jets bringing non-existant international tourists into Queenstown airport.
I'd just like to put a challenge out to the person who suggested he sleep on the street so he'll be left alone ... I know Shane may be an intellegent guy, but maybe the person dishing out the advice should spend a week showing Shane the correct method of sleeping on the street.
A town for the rich only. It would be interesting to know if this is a decision made by staff or elected reps. I think it should be the latter because it is a political decision, not a management one.