Changes to the Queenstown Lakes District Council’s navigation safety bylaw would allow boats to travel at a high speed between the outlet and the first rapid, about 2km downstream.
At the moment boats are limited to 5 knots at all times on that stretch of the river.
The amendment would now allow boats to travel over 5 knots between the outlet and the Albert Town Bridge during daylight hours but they would still be restricted to under 5 knots after 4pm.
Councillors voted to move the proposed changes to a public consultation process, at a full council meeting in Wanaka yesterday.
If no submissions were received, the changes to the bylaw would be adopted at the next full council meeting.
Submissions close on October 31 and a hearing would be held in November, if needed.
A final decision would be issued on December 17.
Otago Fish & Game Council chief executive Niall Watson said he would have appreciated the council approaching Fish & Game before the amendments had been presented to councillors.
Fish & Game would make a submission opposing the changes, Mr Watson said.
While there had been some non-compliance issues with boat users ignoring the speed restriction, that was not a good enough reason to do away with it altogether.
"It’s important to retain accessible areas of rivers for passive use so that people are not unduly disturbed by fast-moving craft and their noise and wave wash."
Queenstown Lakes district harbourmaster Marty Black said the speed restriction was not working.
It was almost impossible to enforce the bylaw as many boat users ignored the speed limit, he said.
Those that did obey the bylaw "idled" along the 5km stretch of the river which in many ways caused more noise and wash than a boat which travelled above 5 knots.
It was now up to the community to decide if they wanted the speed restriction lifted, Mr Black said.
Upper Clutha Anglers Club president Owen Poole told councillors Deans Bank, near the outlet, was an internationally recognised fly fishing area and it was "silly" to think anglers would continue to fish in the area if boats were allowed to travel at high speeds.
Mr Poole said the council needed to develop a management plan for water users in the district so conflicts between different user groups could be avoided.