FINGAL Bay foreshore reserve could become an off-lead dog exercise area after Port Stephens Council made the change and put it on public exhibition.
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However, a push for dogs to be allowed on the beach in "kiddies' corner" has been quashed, with the beach itself remaining a prohibited area for dogs.
The news comes after the council reviewed its dog exercise area maps.
On the current maps the Fingal Bay foreshore reserve is an on-lead dog exercise area.
Port Stephens Council conducted the review after councillors John Nell and Sally Dover asked the council to look into the policy in March 2013. At the time a petition had been lodged by the Fingal Bay Dog Walkers group seeking a leash-free area on the southern end of Fingal Beach.
The 879 signatures supporting the petition asked the council to "designate the southern part of Fingal Bay beach for a distance of approximately 400 metres north-west along the beach from a point known as kiddies' corner, as a leash-free dog area".
The suggestion sparked opposition from some residents who were concerned about factors including safety and hygiene.
Councillors were to vote on the matter on Tuesday night and if approved the new maps will go on exhibition for 28 days.
If no submissions are received, the maps will be adopted by the council immediately. If submissions are received a further report will be prepared for the council's consideration.