Outdoor Standing Ban Scrapped: Surry Hills Pubs Welcome Back Patrons

Patrons spilling out of The Dolphin and other Surry Hills venues are finally able to stand outside with a drink in hand, marking the end of a long-running ban that was previously seen to have dampened the area’s once vibrant street life.

Restrictions lifted after pandemic hangovers

NSW confirmed this week that nearly 250 pubs, bars and clubs across the state have been released from pandemic-era conditions that forced patrons to remain seated while drinking outdoors. The decision, part of broader vibrancy reforms, means inner-city favourites such as The Dolphin can now use outdoor courtyards and footpath-adjacent spaces more freely.

Under the new rules of the Cultural State Environmental Planning Policy (SEPP), licensed premises in designated entertainment precincts — including popular hubs like Enmore, Balmain and Surry Hills — can expand their capacity by up to 100 patrons without applying for new development approvals. Venues outside these precincts may welcome up to 50 additional customers, provided safety standards are met.

The Office of the 24-Hour Economy Commissioner described the changes as the third stage in its efforts to reduce red tape for hospitality businesses.

Boost for Sydney nightlife

Local operators said the changes would be crucial during summer, when outdoor areas are most in demand. Businesses had previously been limited to their indoor numbers even when outdoor space was available, creating what some described as a frustrating imbalance. Industry representatives said that the changes will draw larger crowds, revitalising areas that have struggled with declining night-time activity over the past decade.

Wineries and farmgate venues will also benefit, with streamlined permissions to open outdoor dining areas, eliminating the need for lengthy council processes. This change is expected to boost regional tourism and hospitality as warmer months approach.

Community reaction

Customers in Surry Hills described the move as a long-overdue return to normal social life, with the ability to stand and mingle outside seen as central to the atmosphere of local venues. Live music operators also expect the reforms to strengthen performance spaces and attract younger crowds back into city precincts.

The reforms form part of the government’s third round of measures aimed at supporting hospitality after the challenges of pandemic restrictions and long-standing regulatory hurdles. With Christmas and New Year approaching, industry groups have emphasised the importance of implementing these changes quickly to maximise the summer trade period.

Published 29-Sept-2025