New pubs, bars and clubs are barred from opening up in Ashby-de-la-Zouch town centre.
District councillors, with the backing of the police, set up a saturation zone around Market Street where there are eight bars within about 500 yards.
The ban means any future applications to open licensed premises in the Leics town are likely to be turned down.
Residents had raised concerns about binge drinking and violence as 1,500 people can gather there at weekends.
Police cover
Most of the pubs stay open until 0100 GMT with the town's two nightclubs shutting at 0200 GMT.
Arthur Holland, chairman of Pubwatch and a club owner said: "As it is now with the licensed premises in Ashby - it's probably about right, just enough."
Anyone turned down for a liquor licence could appeal through the courts, but would face strong opposition from the police and the council.
Insp Cathy Yallop said: "Our normal cover would be six officers on duty between 10pm and 3am.
"But, we always have the support call of our neighbouring stations who will come in."