Dunedin's mayor says local authorities' powers are being neutered, after his council admitted defeat in a long-running stoush over alcohol policy.
Last year Dunedin City Council proposed changes including limiting off-licence hours to between 9am and 9pm.
Suppliers appealed to the Alcohol Regulatory Licensing Authority in Wellington, and ultimately won.
The council has now now admitted defeat and will vote on the diluted policy on Tuesday.
Dunedin mayor Dave Cull said the process, which outsourced the ultimate decision to a body that was not based in Dunedin, had undermined local councils' powers.
Hospitality New Zealand also opposed the changes, and the president of its Otago branch, Mark Scully, said he could understand the city council's frustration.