If you want to set up a pub in parts of Melbourne, you may fall foul of a legal restriction that has applied since the 1900s. Some suburbs of Melbourne continue to run as dry areas, and the affected local authorities cannot issue a new alcohol licence without gaining support from residents in the area. If you're keen to apply for an alcohol licence in one of these areas, learn more about the steps you must follow and how this legislation will affect your application.

Origins of the law

In the 1830s, the temperance movement was a popular initiative in Australia that set out to deal with the problem of excess alcohol drinking. Supporters of the movement promoted moderation, and many hotels in the country started to serve coffee instead of alcoholic drinks. While the influence of the movement declined after the Second World War, parts of Melbourne continue to operate a 'dry area' law.

In the early 1900s, residents in parts of the city voted to set up dry areas, where the local council could not issue a liquor licence without approval from the local residents. The council would seek approval through a voting system, where the applicant needed a majority vote to approve his or her application. Dry area laws continue to apply in parts of Melbourne.

How the law works

When you want a new (or revised) drinking licence in a dry area, you must apply to the Victorian Commission for Gambling and Liquor Regulation (VCGLR). As well as meeting all the standard licencing requirements, you must also wait for the authorities to carry out a dry area poll of the local electorate. The VCGLR will decide which neighbourhood to poll, and will then ask the Victorian Electoral Commission (VEC) to carry out the survey after you have gained any other relevant planning permission.

The VEC can conduct a poll through attended voting or through a postal vote. To pass the vote, your request must receive a majority of at least half the formal votes plus one. If the majority votes against the application, the VCGLR cannot issue any licence in the following three-year period. The VEC and VCGLR jointly fund these polls, which cost $9,000 each. Anybody who fails to vote faces a $72 fine.

Success rates

The VEC has conducted 22 polls since 2005, all of which were successful. That aside, these applications were for liquor licences in restaurants or cafes, and there is apparently little demand for new pubs in Melbourne's dry areas. Opponents of dry areas only argue that cafes and restaurants shouldn't need to go through the process, and residents generally seem to prefer not to encourage new pubs in these suburbs.

According to the dry area law, councils can carry out a poll of all voters to decide if residents want to abolish or change dry area restrictions. The City of Whitehorse conducted this poll in 1999, which led to the abolition of dry areas for restaurants. Nonetheless, potential pub licensees must still go through the application process.

Dry areas only affect certain parts of Melbourne, but this legislation can make it difficult for new pub owners to set up business. Carefully consider a potential pub site in Melbourne, as the building's location could affect your chances of getting a liquor licence. For more information, contact a company like John Parsons Hotels.