Some temporary cameras were installed by the Clutha District Council in central Balclutha at Christmas, but no more have been added since.
Senior Constable Tom Taylor, of Balclutha, said CCTV was a great crime prevention tool but it was needed in the town's new "plaza'' area, created as part of the main street upgrade.
The plaza is on the corner of Elizabeth and Clyde Sts.
Damage had already happened there and CCTV cameras could have identified those responsible, he said.
"There has been a need for them because of intentional damage ... [and] assaults in places where CCTV would have been a benefit.''
He said cameras might deter unwanted behaviour, but drunk people often forgot or did not care they were being watched.
Submissions in the consultation process for the council's annual plan included a request from police to expand the town's liquor ban into those areas.
Snr Const Taylor expected the council would consult the police once it had a better idea how many cameras it should install and where it could put them.
Clutha District Council service delivery group manager Jules Witt said the council hoped to have the project completed by June 30.
It still needed to secure a supplier and determine what was available at the best cost.
About $60,000 was allocated in the council's budget but the actual cost could amount to $100,000, Mr Witt said.
Vandalism was the biggest reason the council was bringing in CCTV surveillance.
Mr Witt would not disclose on where the temporary cameras were, but said they were in "central areas of Balclutha''.
Footage from the temporary cameras is being recorded.
When the permanent cameras were installed, they would be monitored by police in Balclutha, then from Dunedin once broadband services improved.
