Dubbo Radio Cabs Co-operative lodged a request for a part-time taxi zone opposite the Castlereagh Hotel within a space dedicated to buses during the day.

The group's efforts, supported by the publican met, with success this week when Dubbo City Council approved a restricted taxi zone for the northern side of Talbragar Street between 10pm and 6am daily.

Council technical support manager Mark Stacey authored a report to the works and services committee investigating the matter.

After the recent upgrade of the Castlereagh Hotel there had been "a demonstrated need for close and accessible late-night taxi services", Mr Stacey said in the report.

There were already similar provisions outside three other hotels in the central business district, which had been operating satisfactorily for about eight years with no concerns, he said.

"Currently patrons of the [Castlereagh] Hotel upon departing will invariably walk a small distance from the venue and call for a taxi which disadvantages patrons waiting at the hotel," he said.

"The provision of a taxi zone opposite the hotel would provide better taxi services to the hotel and support the dispersion of patrons from the CBD in a more efficient and orderly manner.

"The requirement for patrons to cross Talbragar Street is not considered to increase the safety risk of accessing the taxi services."

The existing bus zone in Talbragar Street operates between 7.30am and 6pm on weekdays and 7.30am to 3pm on Saturdays.

The technical support manager advised that the introduction of the taxi zone would restrict general parking during its hours of operation, but there was "more than ample parking availability within the CBD during the night-time periods".