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The scheme, launched in late 2011, was aimed reducing the amount of disposable nappies going to landfill by giving the opportunity to buy a starter pack of modern cloth nappies for $20.
Council solid waste manager Stefan Borowy said in a statement the scheme was ''very popular'' and it was an easy decision to do it again.
''The feedback we had from those who participated last year was overwhelmingly positive,'' Mr Borowy said.
''We surveyed the participants after the first six months of use and 86% were continuing to use cloth nappies while over 70% had noticed a reduction in the amount of rubbish they were putting out each week.''
The contents of the nappy packs had been changed based on the survey responses. While the packs would cost $20 this year, the quality had improved, with each pack now having a retail value of at least $170, he said.
Catkin Bartlett was one of the initial participants in the Happy Nappy Initiative and she said it was interesting to see the increase in the amount of rubbish produced by her household when they have friends come to stay who use disposable nappies for their babies.
There had also been advantages for her in terms of cost and ease of use, she said.
''The cloth nappies are definitely cheaper and I also don't have to worry about lugging large packs of nappies back from the supermarket. Using them has made my life easier in that respect.''
Workshops were being held with nappy educator Kate Mead, ''The Nappy Lady'', who would talk about modern nappy options, explain the pack and how to wash and care for the nappies, as well as discussing the environmental issues concerning alternative options.
Participants at the workshops would receive a voucher entitling them to buy a subsidised nappy starter pack. Packs would be available for purchase by people with babies aged 0 to 9 months, or those who were expecting a child.
Mr Borowy said due to limits on the number of packs available, workshop participants would have first call on vouchers, with any remaining being available at council offices from March 4.