A no-standing zone introduced in December to coincide with the completion of Richardson Park is to be shrunken with one-hour parking permitted.

The move will also see Church Street between Elgin Boulevard and Jack Hore Way become a no-through road.

Bollards will be installed near the Goods Shed to stop traffic.

The moves, approved by council last night, follow a 157-signature petition generated by Piccolo Pod coffee store owner Shane Way who was upset at loss of parking.

They also come after Wodonga's top traffic policeman Sergeant Cameron Roberts met council and recommended through traffic be halted due to safety risks.

However, the motion passed by the council notes that it is a "short term" move and a permanent shut-off would be subject to leases with the affected businesses.

The council's planning and infrastructure director Leon Schultz said after the meeting that he expected parking may be allowed again in the no-standing area by the end of this week.

He expected the closure of Church Street could occur before Easter, pending the arrival of bollards that require ordering.

During the meeting, Mr Schultz said the redeveloped area of Church Street around Richardson Park and the Goods Shed had been designed as a shared zone.

"Physically it has been constructed without kerb and channel....no pavement, so the design that was put in place at the time was for a shared zone," he said.

"The only reason that it is not yet a shared zone is that it requires a council decision and it needs VicRoads approval as a major traffic control item.

"Until such time as that is done we can't sign it or treat it as a legitimate shared zone, even though it is designed as such."

A shared zone would involve a 10km/h speed limit and pedestrians getting priority.

Deputy mayor Kat Bennett suggested the new measures be reviewed after six months, but councillor John Watson suggested more time would be needed before the issue was revisited.

Councillors were told Piccolo Pod relied heavily on nearby car parking and it could be lost to the city without it.

Florist Thistle and Fern and eateries Andiamo Street Kitchen and Topolino Gelateria expressed concern about the lack of a loading zone for business deliveries.

Their introduction was not recommended on the basis they would detract from the location.

The owner of The Goods Shed beer cafe urged the council to fully close off the area to traffic to ensure a greater sense of safety for families.