The by-law proposes prohibiting freedom camping at the Bason Reserve, Kowhai Park, Springvale Park, and the Central Business District.
It also proposes restrictions on freedom camping at Kowhai Park and Springvale Park car parks, as well as limiting the number of nights campers can stay at any one site and the number of vehicles at some sites.
Councils can make a local by-law under the Freedom Camping Act 2011 to protect an area, protect the health and safety of people who may visit, or protect access to the area.
By-laws cannot prohibit freedom camping outright and must identify areas where freedom camping is either restricted or prohibited.
McDonald-Rose said the by-law would allow the council to address community concerns while continuing to provide suitable sites.
"Until now we have encouraged the use of our local freedom camping sites, while taking into account feedback from the community relating to freedom campers."
Macdonald-Rose said the council's general position was that freedom camping was a positive activity for Whanganui.