State Highway 83 and all the streets in the township have a 70kmh speed limit, which Duntroon Districts Association chairman Mike Gray, hotel co-owner Heather Woodrow and school principal Bev Conlan say is ridiculous.
There used to be a 50kmh limit, but that changed in 2005.
Mr Gray acknowledged that, statistically, the state highway did not meet the New Zealand Transport Agency's (NZTA) formula for a 50kmh limit, but said there were other issues such as safety that needed to be considered.
He was adamant a 50kmh limit was needed on Duntroon's side streets which were narrow with many blind spots and used by children.
Mrs Woodrow felt the whole town, including SH83, should have a 50kmh limit..
"Most traffic doesn't travel at 70kmh in the town. Trucks are the worst offenders - I don't believe how fast some of them go," she said.
She has a good view of the highway from the bar at Woody Faulty Towers hotel.
The highway is dangerous for children to cross to school, and there are no footpaths along side streets. The school bus has to turn off the highway to the school, on a blind bend at the eastern end of Duntroon.
Mrs Conlan agreed the speed limit should be lowered to protect school children.
"I don't see a need for a 70kmh limit. We would welcome a reduction in the limit right throughout the town," she said.
The school had tried unsuccessfully in the past to have a lower limit.
Both Mr Gray and Mrs Woodrow said the limit should be lowered because of extra people who will visit the town when the Alps 2 Ocean cycleway starts operating.
Mr Gray said there were two issues facing the community - the limit on the state highway governed by the NZTA and that on the side streets, set by the Waitaki District Council.
The association was lobbying the council to lower the limit on side streets, but had been told it had to wait until the next district-wide review, which may take place next financial year.
It is an issue the association will pursue through the council's annual plan submission process, demanding funding be made available to carry out the review as soon as possible.
Dealing with the NZTA over the state highway would be more difficult because of the formula for setting speed limits, but Mr Gray believed more than statistics should be taken into account.