After Burger Urge was approved to set up a permanent dining structure on the footpath, Dubbo Regional Council decided to investigate further opportunities for outdoor dining as a way to attract more people to the CBD, especially at night.

A draft policy has been developed that looks at the rules for cafes and restaurants to set up permanent on-street dining.

Dubbo Regional mayor Ben Shields said outdoor dining would drive more people into the centre of the city.

"It goes to show Dubbo is moving into being a more cosmopolitan, regional city. We've always known Dubbo is the capital of Western NSW, it's about time we start behaving like a capital," Cr Shields said.

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As it currently stands, businesses and restaurants can have dining set up outside, however it has to be packed away at the end of business hours. Council is looking at allowing the businesses to construct permanent structures.

It would make the CBD a destination, the mayor said.

"It goes to show what sort of evolution Dubbo is taking into being no longer necessarily a bush country town but a thriving regional city. This is a great development we're moving into," he said.

The structures would need to be consistent with the streetscape and allow for pedestrians to pass.

Businesses would be required to pay an annual fee to council to rent the outdoor dining space. The cost of renting the space has yet to be determined.

A bond would also have to be paid to council to cover the removal of the permanent structure if the business closes without removing what they set up.

The plan will be placed on public exhibition to allow for the community to give feedback on the idea.