Mayor Paula Southgate and deputy mayor Geoff Taylor have pushed hard for the initiative, alongside Hamilton Central Business Association (HCBA) general manager Vanessa Williams.
"These are unusual and desperate times for many hospitality businesses in our city. We wanted to do what we could to get rid of red tape," Southgate said.
"People's jobs and livelihoods are on the line and all councillors have agreed we must do whatever we can to help. We know many of our restaurants and cafes simply don't have space inside to meet Covid spacing rules.
"In Hamilton, we are privileged to have some great public spaces so let's use them," she said. "Let's take advantage of that, support our local businesses, and help resurrect the city's dining scene."
Measures within Hamilton City Council's control will be in place as soon as possible. Any move from the Government to loosen up liquor laws and provide for temporary variations to on-licence conditions may take longer.
"We need the Government to change the law urgently so that's what we're asking for," Taylor said.
"But let's be really clear. We're not advocating for booze-ups in Garden Place. We simply want people to be able to sit down at a table, enjoy a glass of wine or a beer with a meal from a nearby restaurant – that's all."
Williams said hospitality makes up 20 per cent of Hamilton's central city businesses and the change could make a huge difference to their viability. She was hoping the Government would come to the party fast on changes to liquor legislation.
"Our restaurants and cafes are huge contributors and create a real vibrancy and hum in the city over summer. They keep a lot of people in jobs and drive a lot of spending. The opportunity to extend dining and allow people to enjoy our restaurants despite Covid will be warmly welcomed."