All bars in the Queenstown Lakes district will close by 4am from Wednesday, more than two years after the policy was adopted by the Queenstown Lakes District Council.
The policy, adopted by the council in May 2007 to help reduce crime, made 4am the blanket closing time district-wide.
The policy was to be enforced when existing 24-hour licences came up for renewal.
Queenstown's Bardeaux bar at Eureka Arcade is the last bar to hold a 24-hour licence.
Its on-licence renewal application was adjourned at a Liquor Licencing Authority hearing in Queenstown this week.
Lawyer Jim Castiglione said the company needed more time to obtain expert evidence which would prove blanket closing times did not reduce alcohol-related crime.
He had not received council evidence in time to prepare his case and applied to the authority for an adjournment.
Sergeant Keith Newell said the hearing was adjourned until the next authority hearing in Queenstown early next year.
However, he said the company agreed to begin closing at 4am from Wednesday pending the hearing.
"That is the last bar in line now after two years in the making.
"It's an even playing field now," he said.
Bardeaux is part of the Good Group bars.
Good Group chief executive Russell Gray said the company had agreed to pull back Bardeaux's closing time from 5am until the hearing early next year.
He said the loss of one hour's trading would make "negligible" difference to the group, which was continuing the fight for 24-hour licences.
Other Good Group bars are challenging the Queenstown Lakes District Council's blanket 4am closing time in the Court of Appeal.
My Noodle Ltd (Sky Bar), Central Otago Breweries Ltd (Harrys Pool Bar), Chuck Norris Ltd (Minibar) and Barmuda Ltd were the named appellants against the council's restriction of 24-hour trading for licensed premises at a one-day hearing in Wellington last month.
A verdict is due next month.
Mr Gray said the fight against 4am closing was not a "money-grabbing exercise".
"It's about principle.
"We believe we should have the right to choose our operating hours.
"We have resource consent and a licence for 24-hour trading," he said.
None of the bars in the group had opened for 24 hours but they wanted the ability to choose when they could open to satisfy market demand.
"For example, the All Blacks are playing at 3.30am on Sunday.
"Harrys is a sports bar so we'd like people to go there and watch the game."
The bars found it difficult to obtain special licences available for events beyond 4am.
"It is made extremely difficult with a lot of hoops and obstacles to overcome."