The Dunedin City Council has voted to slash the speed limit on the city's main street from 30 km/h to 10 km/h.
After legal to-ing and fro-ing and a delay, the council this morning agreed to the measure - designed to bring people back into the city after the lockdown.
The council has also agreed to give pedestrians priority over vehicles, provide free parking and allow businesses to use footpaths for free.
The measures, which have been panned by business and motorist advocacy groups, passed nine votes to four.
Councillor Jim O'Malley pointed out the measures are about health and safety for residents.
"If we don't address the fears of the public coming back into town then we are not addressing one of the components that affect the business recovery."
The measures will remain in effect until physical distancing is no longer required.