Last month, Alpine Shire Council announced the consumption of alcohol in public would be banned during November's rod run, but would still be allowed in licensed venues and private property.

The ban would mean people could not drink in or around Ireland Street where cars often unofficially gather during the rod run.

However, on Tuesday council voted to allow a delegation of Bright business people to put together a risk management plan and application for a separate event in the Bright CBD which would coincide with, and complement, the Bright Iconic Rod Run.

The application and plan must be submitted by next Wednesday, it will then be assessed by a Risk Assessment Panel made up of representatives from council, police, the CFA, SES, Alpine Health and Ambulance Victoria.

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The vote divided council, with Crs Peter Roper, Sarah Nicholas, John Forsyth and Daryl Pearce in support, while Crs Kitty Knappstein, Tony Keeble and Ron Janas were against the idea.

Cr Nicholas told the packed council meeting of about 70 people, that their concerns had been heard and "a complete alcohol ban is a blunt instrument".

On Wednesday, Cr Peter Roper said the alcohol ban was implemented because any gathering of people drinking needs to be adequately supervised, and neither the rod run committee nor council had the means or desire to oversee the unofficial car circuit.

He said he hoped the traders had not left the proposal too late.

"It is a complementary aspect to the rod run and traders feel strongly about it, given their feelings it's only sensible to allow them the ability to propose it," he said.

Cr Forsyth said the businesses were very passionate about ensuring the previously-unofficial event continues.

Both Cr Roper and Cr Forsyth said it was important that any application met the requirements of the Risk Assessment Panel and be put through the due processes.

Mayor Cr Janas said he personally did not support the last-minute bid because too much was still unknown.

"There's a number of issues," he said.

"I don't personally have enough information about what is proposed, who is the organisation auspicing it, who is going to fund it and there's also a very limited time to process the whole application to enable a proper assessment."

Cr Janas said the alcohol ban appeared to have had no impact on accommodation bookings in town