A Port Stephens Council spokesperson confirmed on Monday that the Smart Parking meters were live as part its phased roll-out.

"The next phase of the project will include installation of the electronic signage. We're working hard to help our community with Smart Parking - you can visit us in the Donald Street shop front, reach out online or via social media, or call us," the spokesperson said.

The paid parking zone includes Government Road, Church Street, Tomaree Street, Yacaaba Street, Victoria Parade, Magnus Street and Donald Street.

Port Stephens Mayor Ryan Palmer said the funds collected through the new Smart Parking system would be reinvested into delivering Nelson Bay Next initiatives by funding improvements to "public domain, landscaping, increased car parking and place activation".

"Residents and visitors will notice changes to parking including new parking meters, number plate recognition instead of paper tickets, parking sensors and a new app. Plus, there's digital signs on the way to help make finding a park easier," he said.

When paying at the meters, drivers register their licence plates. Parking inspectors can search for licence plate details using an app on their phone to see if a meter has been paid.

Drivers can feed the meters using cash or card, but they are also connected to the NSW Government's Park'n'Pay app. People can pay for parking and feed the meter when their paid parking time begins to expire through the app, without having to return to their car.

The app sends a notification to the user when their meter is running low or their park was about to turn into a no stopping zone.

Port Stephens Council's environmental health and compliance coordinator, Marc Goodall, said there will be a moratorium on some parking fines while residents and visitors to the area grew accustomed to the new parking system.

"To get ready for the new system, it's important to sign up for free parking and download the Park'nPay app as your number plate is your ticket to park," he said.

"We know this is a big change, which is why we've put a pause on parking fines within the paid parking area until smart parking is fully operational to make sure everyone has had enough time to learn the new system."

Port Stephens residents, rate payers and businesses are eligible to register for a permit allowing them to park for free in the Nelson Bay CBD.

The council said more than 7500 people have registered to receive free parking in the Bay.

"We'll also be at the pop up shop at 2/26-28 Donald Street until Wednesday, December 30 to help if you want more information or are having trouble with using the app or the Park Free permit portal," Mr Goodall said.

The switching on of the meters is the latest in a series of changes for the Nelson Bay town centre, which has included the addition of blue 'waves' on the roadways of Stockton and Magnus streets. The roads have been stamped with a special asphalt treatment to highlight the shared 10km/h zone.

The council has placed roadblocks at intersections within the town centre to make sections of Stockton and Yacaaba streets one-way only.

The new measures, introduced on December 3, are permanent fixtures and are designed to improve traffic flow around the town centre by making it easier to navigate and improve pedestrian safety around the Stockton and Donald Street intersections.

"The decision to permanently convert these streets to one-way was one of the recommendations of the Nelson Bay Independent Parking Panel in 2018 and has been approved by the Local Traffic Committee which consists of RMS, MPs (Port Stephens and Newcastle), councillors and bus companies," Port Stephens Council previously told the Examiner.

By making the section of Stockton Street and Yacaaba Street one-way only between Tomaree Street and Donald Street, 28 additional car parking spaces, including two accessible and six motorcycle spaces, have been created.

To register for free parking in Nelson Bay, go to portstephens.nsw.gov.au/smartparking.