Parking sensors will be fitted along Darby Street in an effort to improve turnover, but they won't identify cars that overstay the time limits.
The sensors will be installed beneath the road in parking spaces between Queen and Bull streets, as well as along Council Street and in the car park behind Hotel Delany in coming weeks.
They won't collect identifiable information, but will record when a vehicle arrives and leaves a parking spot, monitoring how long the vehicle has stayed.
Newcastle deputy lord mayor Declan Clausen said this will help council staff enforce the time restrictions, whilst ensuring turnover.
"Installing the sensor technology will allow us to collect data on parking occupancy and turnover, ensuring parking spaces and restrictions suit the needs of customers and traders now and into the future," Cr Clausen said.
The technology is in response to feedback from the recent Streets as Shared Spaces trial, which identified parking turnover as a concern for businesses.
"Many local businesses have told us that some drivers are parking well beyond the two-hour limit, which prevents people who are coming for a meal or coffee from being able to find a spot on Darby Street," Cr Clausen said.
Most businesses surveyed in the Darby Street and Hamilton precincts supported the installation of parking sensors, Cr Clausen said.
Sensors will also be installed on Beaumont Street, Hamilton later this year while selected areas of Hunter Street, Newcastle are also being reviewed in line with ongoing infrastructure works.
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