Residents of Hahei appear largely in favour of charging visitors up to $10 for parking.
The Thames-Coromandel District Council wants to ban people from parking on the town's streets between October and April each year.
Visitors would have to use paid car parks to visit the beach, and attractions like Cathedral Cove.
Mayor Sandra Goudie explained to Newstalk ZB's Larry Williams the rationale behind the proposal is because the amount of traffic coming through Hahei and how it's affecting residents.
"The traffic that you get when you go to Hahei during the height of summer, it's just gridlock. It's bumper to bumper, wall to wall cars, cars parked wherever they can find a space.
"A number of the locals are complaining that they can't get in and out of their driveways, they've got people blocking their accesses.
"Cars will park in every single space, every single verge. The locals are making money out of providing car parks."
Williams asked about the reaction over the new proposal with Goudie saying: "We don't know yet, because we haven't got all the submissions.
"I'm picking that there is going to be a pretty wide range of views, and they tend to get fairly polarised at Hahei on matters.
"I think this is important, I think this is great that we are getting the coverage we are because it means people will really think about the issue and make a considered response."
"When we do make a decision, we are hoping the final solution will be a good workable one."
She also mentioned another they may get around with the amount of cars parked on the Hahei's roads is painting yellow lines.
Newstalk ZB has received mixed reactions from local callers.
Hahei Holiday Resort manager Grant Kilby told Andrew Dickens there's huge pressure on local infrastructure, and he welcomes the idea.
"The benefit of that is that all the revenues to gain from that will go back into the infrastructure to enhance the tourism attraction that Hahei is."
Other callers from locals and bach owners were mixed, with some strongly opposed while others were not as bothered.
Gloria, who lives near Hahei, says she doesn't mind the cars being there, and says that people need to accept that there will be cars.
"When you've got some sort of attraction, people are going to want to come and see it, and you have to handle it the best you can."
She pointed out there is already a shuttle service taking people to the start of the walk down to the beach.
Graham, who owns a bach in Hahei, says he attended a public meeting about the changes, and there was a "100 per cent" vote against changing the parking.
He says that 90 per cent of the people going there are with children.
The public have until Monday to have their say on the bylaw.