Eleven licensed premises in the area formed the Lower Octagon Licensed Forum earlier this year and yesterday announced dress and behaviour policies, as well as a blanket ban for those caught infringing the new rules.
The forum was begun after bar owners realised the benefits of working together on events such as New Year's Eve, or rugby tests.
Forum spokesman Richard McLeod said the group had also applied to the Dunedin City Council for a trial closure of the lower Octagon to vehicles from 5pm Friday until 5pm Sunday during the summer months, but said the trial would not take place this summer.
The dress code, which was effective immediately, meant those wearing items such as excessively ripped clothing, beanies and steel-cap footwear would not be allowed into any of the bars for the evening.
Mr McLeod, a part-owner of Alibi, said they wanted to encourage those visiting Octagon bars to dress appropriately, which they believed would encourage better behaviour.
"If people are looking rough, they shouldn't be out in one of the bars."
The Octagon was growing in popularity and bar owners wanted to be proactive about stopping "loutish" behaviour, he said.
Anyone caught misbehaving would be banned from all 11 premises for the night, with more permanent bans an option.
Security guards from the bars would notify each other of those banned.
"We are trying to set reasonable standards so that everyone can enjoy a night out in a safe environment, and violence or repeated unacceptable behaviour will result in a permanent ban.
"We are not talking about huge numbers of people who we have problems with," he said.
Dunedin police area commander Inspector Dave Campbell said the ideas were positive.
He agreed good behaviour often went with a high standard of decor in a bar and a high standard of dress.
Student bars in the 1990s had a similar blanket-ban policy, which was effective in settling disorder in the area.
However, he noted the bans then were for longer periods, of up to a month.
He said to achieve maximum benefits, a permanent ban was required.
The central city, including the Octagon, had the highest incidence of assaults, mainly because of the high concentration of licensed premises, he said.
Dunedin City Council liquor licensing co-ordinator Kevin Mechen said he had his "fingers and toes crossed" that the new policies would work.
But, he said, many of the problems occurred outside licensed premises.
He also questioned whether bars had as much influence in curbing alcohol abuse as previously because of cheap prices offered by off-licences.
Octagon forum
Alibi, The Craic Irish Bar, Ra Cafe and Bar, di lusso Bar, Pop Bar, Barakah Bar, Bacchus Wine Bar, Lemon Room, 10 Bar, Craft Bar, The Terrace