A SIGN prohibiting camping will be removed from a popular waterhole in a bizarre move which critics argue will encourage illegal camping.Moyne Shire voted to allow grey nomads and other travellers to sleep at Panmure's roadside reserve, despite "camping" being illegal.The popular rest area was one of many across the south-west which came under fire in March for allowing tourists to avoid site fees at established camping grounds. The shire erected the sign after the Warrnambool Tourism Association (WTA) called for a crackdown on freeloading campers using scenic car parks for overnight stays. The WTA yesterday declined to comment on the backflip. But those pushing for the "no camping" sign to be removed claim overnight visitors to Panmure inject much-needed revenue into local businesses.The attempt to appease the Panmure community sparked debate at Tuesday's council meeting as to what constituted camping.Mayor Ken Gale, a motorhome enthusiast, said as long as travellers slept in their vehicle, and did not "put their stabilisers down", they were not deemed to be camping.But pitching a tent or laying a mattress on the grass was camping, Cr Gale explained during the spirited debate. Cr Stan Cook, who moved the motion to remove the sign, said the Panmure reserve was not an area where people stayed for nights on end, but gave drivers a safe place to sleep. Cr Ros Stewart said families with children often needed a place to stop after a long day on the road."They don't leave rubbish around. They're very clean people (and) they're very honest people," she said. Cr Gerald Madden spoke against the proposal, arguing removing the sign would encourage campers to stay and set a precedent to open up other potential camping spots. Acting environment and planning director Kath Gosden said taking down the sign would not tell travellers "you can camp here". Local laws officers were urged to use their discretion, she said. Ms Gosden said the message to visitors was provided you "were staying for one night (and) not disturbing other users then you're able to stay" at Panmure. Cr Brenda Hampson joined Cr Madden in voting against the idea.Cr Hampson feared word would spread among travellers: "don't camp anywhere else, camp at Panmure, there's a great swimming hole and you don't pay any fees". Warrnambool City Council tourism services manager Peter Abbott "strongly urged" people to use the commercial caravan parks available in Warrnambool, which were equipped to house large motorhomes all year round.