The changes are expected to revitalise nightlife and boost the local economy in existing shopping corridors like Darling Street, Booth Street, Norton Street and Parramatta Road.

The former Leichhardt Council wanted to free up the process of conversion for businesses with existing development consent for a restaurant or cafe.

After lengthy negotiations, the State Government on Monday confirmed the legislative changes.

Proprietors in the former Leichhardt council area can now use a simple Complying Development pathway.

This is a 10-day approval process from Council or a private certifier, rather than a lengthy DA.

Inner West Mayor Darcy Byrne said it was a win for common sense and a shot in the arm for the night-time economy.

“I first pushed for this amendment three years ago as Mayor of Leichhardt and I commend the State Government for finally acting and making it easier for local businesses to operate and grow.

“Small bars can help to bring our streets alive at night and boost our local economy," he said.

“Small bars typically attract patrons who are interested in a smaller, more intimate setting and often are visited as part of a journey - like visiting a small bar, cinema and restaurant in the same night.

“By promoting small bars in existing shopping areas, we can create a precinct destination rather than a single venue like a large pub or club.

“As more small bars open, we will see a boost to tourism and spending in our local economy as well as more opportunities for local live music, arts and culture.

“I will certainly be proposing that Council extend this provision to all businesses in the Inner West Council area as part of the new Local Environment Plan [LEP],” he said.

Norton Street in Leichhardt in particular will welcome the change.

Known as “Little Italy”, the once thriving shopping strip is in dire need of reinvigoration.

In the post-WWII period, the area boomed as many Italian migrants moved to the area.

Lined with Italian restaurants, cafes and patisseries, Norton St was a thriving hubbub of food and culture that was comparable to Melbourne’s Lygon St.

Nowadays, many shops sit empty, and business owners say that extraordinarily high rents and generational changes are to blame.

There have been some improvements over the last few years, with the Royal Hotel undergoing renovation and seeing a sharp spike in patronage.

But the new legislation will hopefully see an increase in evening licences and more young people returning to the area.

Businesses now need to simply get a ‘small bar liquor licence’ from the NSW Independent Liquor and Gaming Authority (ILGA) and make sure that they do not change any of their operating conditions like opening hours or plans of management.

Council can offer advice to businesses wanting to use the new clause.

Businesses are advised to use the pre-Complying Development Certificate service before they lodge to make sure that they have their application right.

Further information on the application process can be found on the Inner West Council's website.