The Auckland Council Regulation of Prostitution in Specified Places Bill, which would give councils the ability to ban prostitutes from certain areas, is before Parliament.
The local government select committee is expected to report on the bill in two weeks.
Prostitutes could be fined up to $2000 for soliciting in restricted areas, and police given the power to question and arrest clients.
"This will build resentment and fuel further hostilities," said the collective's national co-ordinator, Catherine Healey.
Ms Healey says no communities in the world have successfully zoned street-based sex work, and is calling for authorities to adopt a more friendly approach towards prostitutes.
"Building friendlier relationships, and accepting you are in a neighbourhood being used by street workers, is the most realistic approach," she said.
In the council booklet, the manager of the Hunters Corner and central Papatoetoe business districts, Donna Lee, said that as well as damaging public property, prostitutes littered the area with condoms, drugs and human waste.
"We deal with human waste every day," she said.
"Prostitutes use these [street poles] as dancing poles. The poles are part of their soliciting equipment and they often snap."
A shop owner also claimed up to 20 to 30 prostitutes worked outside his shop, and said they shoplifted from his store, begged customers for money and used the back of his shop as a toilet.
Jay Jay, a transvestite sex worker, who has worked for six years at Hunters Corner, said prostitutes were not the main cause of the problems and were being blamed as "easy targets".
"Auckland Council has turned us into public enemies and we have become targets for public abuse," she said.
"People are throwing everything, from drink bottles to used condoms at our faces from their cars, and we are being blamed when the s*** hits the floor."
