Edinburgh Gardens will be able to continue hosting boozy lunches and picnics after councillors agreed that alcohol should not be banned in the park.
Some locals had called for the booze ban after complaining of things from rubbish to increased drug use to human waste in laneways near the park.
Residents in the area called on the council to implement a temporary ban on alcohol to stem the crowds.
Since the COVID-19 lockdown ended, Edinburgh Gardens has seen thousands of Melburnians gather for picnics on sunny days.
The park was particularly popular when hospitality venues remained closed and limits on gatherings meant that people had few options on where and how they could catch up.
Councillors voted unanimously to not temporarily ban alcohol in the park, instead, it will launch a campaign encouraging those using the park to exhibit respect for local residents and amenities.
The council will also consider adding more bins, toilets and cleaning.
Complaints about loud music have also flowed in over the last month, with 19 complaints officially made.
Victoria Police is understood to have been meeting twice a week to discuss the situation at Edinburgh Gardens.