Council parks and recreation operations manager Jendi Paterson said it would help protect the coastal grounds north of Dunedin, used by non-self-contained freedom camping vehicles.
"In previous years, the grass received damage from all the vehicles on it. This is a cost-effective way of dealing with that."
Laying the limestone gravel cost $4904 and it covered an area of about 625sqm.
She said the council had consulted the Waikouaiti Coast Community Board and was working on putting out new signage, expected to be in place before Christmas.
Warrington resident Ken McHoull, who had previously spoken out in support of freedom campers, agreed the gravel area would help solve the issue of damaged grounds.
Mr McHoull kept a daily count of freedom camper numbers and said they had been steady over the past few weeks, averaging around 25 to 35 non-self-contained vehicles per day.
He said at peak times over summer the number of vehicles could increase to 100 or more.
Saddle Hill Community Board chairman Scott Weatherall said the Ocean View site, south of Dunedin, experienced similar numbers, and there was rarely a day where there were no freedom campers.
He said he expected numbers to increase over the summer.
- Jack Conroy
