It stems from a High Court ruling, handed down last year, which ruled Queenstown council’s 2021 Freedom Camping Bylaw was invalid.
That bylaw, which introduced further prohibitions on freedom camping within the district, was put in place after freedom campers were having a noticeable negative impact on the environment.
The New Zealand Motor Caravan Association sought a judicial review, and after the High Court found in its favour, the council had to revert back to the rules under the 2011 Freedom Camping Act, which do not permit a blanket ban.
And it appears freedom campers are taking full advantage.
Nearby resident Sharleen Downing said over the past month she had noticed more campers parking overnight, particularly along the scenic, lakefront street, which runs between Frankton Track and Queenstown Gardens.
"On Saturday, from the corner of Park St, where Queenstown Gardens start, to the intersection of Adelaide St - a 400m section of road - I counted 18 vans.
"I have seen a lady pee on the street, in between two cars, while her boyfriend went in the trees - they saw me coming and didn’t seem to care.
"My husband has even seen three ladies shaving their underarms and legs in the lake."
Karen Brown walks her dog along the street every day.
"I have seen human faeces on the side of the street."
With no public toilets in the area - the closest are in Queenstown Gardens - she was concerned about the environmental impacts of people treating the lakeside as their loo.
A Suburb St resident, who asked not to be named, noted the vans had stickers advising they were fitted with "little pull-out water potties ... but they don’t get used".
"I worry, because those beaches are packed in the summer and if a tourist or whoever is using that for ablutions, that’s pretty gross."
Queenstown Lakes District Council responsible camping programme manager Amy Galloway said "without a current bylaw, our ability to move campers on is limited".
"However, to freedom camp in the district, vehicles must still be certified self-contained with a valid warrant displayed.
"This means vehicles should have a toilet and enough fresh and wastewater storage for three days without getting more or dumping waste."
German freedom campers Jan-Luca Jakob, 19, Helen Pier and Leefke Land, both 18, said while every self-contained van had its own toilet, they were yet to meet "a single person that has even used it once".
"It’s kind of disgusting - like, no-one wants to use your own toilet and have to clean it out."
Miss Pier and Miss Land said while they had running water, showering was a problem, "so we rely on using public pools, or just going in the lake or the sea if we are near".
The trio said they were told about the Park St spot by other campers.
"I’m not even sure if it’s totally allowed here - but there are lots of other people, so it must be OK," Mr Jakob said.
"There are other campsites which are way nicer and have proper facilities, but we don’t want to pay $20 a night.
"We have a few friends that live in the hostels here, and they pay between $50 or $90 a night, and we pay nothing. So in a week, we save $450 compared to our friends."
Ms Galloway said enforcement officers were checking Park St for "valid self-containment" during their night patrols and issuing infringements to campers without a valid warrant displayed.
"Summer ambassadors" are also visiting the area regularly during the day to educate campers, promote local campsites, pick up litter and report any issues to council officers.
"Since December, our customer service team has received around 120 requests for service from the community on matters related to freedom camping," Ms Galloway said.
"These have in turn been dealt with by the appropriate council staff."
Between October and January, council issued 201 infringements under the Freedom Camping Act and 32 under the Reserves Act.
