Police announced yesterday they would withdraw opposition to an application by the Great Open Ladies Fund for a special licence to run two bars at next year's Omakau trots on January 2.
They initially opposed it partly due to concerns about the event having a bring-your-own alcohol policy as well as the bars.
At a hearing in June, police said they could prosecute the club and some of those attending for allowing alcohol to be brought into the Omakau racecourse at this year's meeting.
When asked yesterday why police dropped their opposition, Otago Central Lakes area commander Inspector Olaf Jensen said in a statement police recognised the race was an ''important and long-standing event'' for the community. Following discussions with police, the club agreed to ''not encourage or facilitate any BYO aspect'' at the next meeting, he said.
''These changes will provide greater assurance that the event will be well run, and mitigate the risk of falling foul of the [Sale and Supply of Alcohol] Act.''
This meant the event could remain BYO, but it would not be able to advertise that fact, Mr Sinnamon said.
Organisers would also have to be clearer about defining the bar area and making sure alcohol was not taken out of it.
Police did not respond to a question asking if there would be a change in stance to other community events with BYO alcohol policies.
A decision was made this week to cancel this year's Alexandra Thunder Sunday drag racing event on September 25, as it was not allowed its usual BYO policy.
Mr Sinnamon said his feelings were ''somewhere between relief and excitement'' over the Omakau Trots decision.
''We'll be able to have another great day out which will have a straight benefit to the community.
''It has been a long road to get here. We'd like to thank the police for their willingness to engage and discuss their concerns surrounding the application.''
The club and attendees would not be prosecuted for allowing alcohol at last year's meeting, he said.
The licence has not yet been approved, but it struck no other opposition, so the District Licensing Committee would make a decision privately.
Central Otago District Council licensing inspector Ray Applegarth, who reports to the committee on behalf of council staff, said the decision would be made within a week through the ''normal channels''.
When the application was originally filed, he said in a report the people attending the event were unlikely to behave in such a manner as to have an adverse effect on the area's amenities.
The event held in January this year was granted a special licence from the licensing committee, despite police opposition.
The event has run for 52 years.
