The bylaw stopping freedom camping in Westland has been suspended after being legally challenged by the New Zealand Motor Caravan Association.
The association says the bylaw was unfair because it was far too limited on where people could camp.
General manager Bruce Lochore says there were restrictions within one kilometre of every township in Westland.
"They've had no freedom camping in the entire district for non self-contained vehicles. That means that people with tents, families who traditionally go across and camp ... can't do so, so it was overly restrictive."
Mr Lochore says the Westland District Council avoided court by suspending the bylaw on Thursday.
Mayor Maureen Pugh says the $50,000 it would cost to legally fight back is too much.
She says there is currently no freedom camping enforcement in the Westland District and will not be for the foreseeable future.