Cr James Purcell introduced an urgent motion at its monthly meeting, saying the issue had to be addressed after a vicious dog fight in the CBD on the weekend.

"I believe it's an urgent motion and failure to act could see a person seriously injured," he said.

Cr Purcell's motion to review the local laws regarding whether to restrict dogs in the CBD, with a close look at Sackville Street between Bank and Cox streets and Bank Street between Princes and James streets, was passed 5-2.

Cr Jordan Lockett and Cr Karen Foster voted against the motion, suggesting it may be a "knee-jerk reaction" to the incident.

However, Cr Purcell said the "serious dog fight" on the corner of Sackville and Bank streets was not an isolated incident.

Cr Lockett said he was concerned a ban on dogs in the CBD would be a deterrent to some visitors.

"One of the things that concerns me is that Port Fairy thrives on tourism," he said. "Without tourism there wouldn't be the bustling town that there is.

"Banning dogs I don't think is the right way to go to be honest."

Cr Jim Doukas supported the motion, saying he wasn't calling for dogs to be banned, simply for a review of the local law.

He said many people had spoken to him about the issue over a number of years.

"We're doing a review and we're going to consult with the community," Cr Jim Doukas said.

"Let's not get confused here."

But Cr Lockett said he was concerned the review could divide community members.

"We don't want to be the nanny state of 'you can't drink down the street, you can't smoke, you can't take your dog," he said.

"That's against the Australian way of life."

Cr Foster agreed the step could be a knee-jerk reaction and voted against the motion.

Cr Purcell said the motion was to start the process of reviewing the local law regarding dogs in the CBD.

"It's not deciding what we do now or when we do it," he said.

Crs Doukas, Purcell, Ian Smith, Damian Gleeson and mayor Daniel Meade voted in favour of the motion.

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