Residents who choose to live near pubs, clubs and restaurants will have to sign a clause deterring them from making noise complaints under new reforms put forward by the NSW government.
It is part of the government's vibrancy package being introduced to parliament today, which has been designed to reinvigorate the state's nightlife.
The reforms establish Special Entertainment Precincts (SEPs) in local communities to ensure hospitality venues, live music, performance and events can flourish.
Under the changes, people who purchase property in an entertainment precinct will have to sign an "eyes wide open" clause included in paperwork for homes and apartments that acknowledges they are moving into an area of late-night activity.
Residents will be made aware of this in a bid to reduce friction with venues.
'We want this city to be exciting and vibrant'
NSW Premier Chris Minns said the changes were vital for Sydney's nightlife.
"We want this city to be exciting and vibrant and a place to attract young people to stay, and also to spend money and drive the night time economy," he said.
"Not just local residents, but also those from around the world.
"That's not going to happen unless we can get rid of some of the antiquated rules that have been in place for a long time, which actively dis-incentivise pubs and clubs from operating."
The premier thanked the state's night-time economy minister John Graham for "driving these reforms".
"This is a recognition that in a city as big as Sydney, there are parts of this town that are used by people that don't just live in the immediate vicinity of that club, that pub, or that restaurant."
NSW Premier Chris Minns said the changes would help to reinvigorate Sydney's nightlife. (ABC News)
Mr Graham said the goal of the reforms was to "boost business and consumer confidence" in the coming months.
"We want to make sure that Sydney, New South Wales, is as good as it can be this summer," he said.
"These are common sense changes, but they make a real impact to people's lives."
Further changes to state's nightlife
The second wave of reforms will also scrap certain restrictions enforced on a licensed premise including "no entertainment" clauses and rules dictating what music musicians play at a venue, and abolish restrictions on outdoor dining approvals that prevent patrons from drinking alcohol while standing outside a venue.
Other changes include scrapping a rule that prevents people living within 5 kilometres of a registered club from entering it without becoming a member, and changing the Major Events Act to make it easier to support events like Vivid Sydney.
It follows the first round of vibrancy reforms which relaxed outdoor dining rules, cut liquor licensing fees for venues that offered live music and performance, ended single noise complaints from shutting down venues, and making it easier to hold festivals and events on major streets.
A $1 million grant program set up by the state government will help local councils establish SEPs.
The latest reforms expand on the SEP framework and builds on the Enmore Road SEP. The SEP on Enmore Road was first trialled by the government in 2022 and later made permanent following community support.