It's the vibrant inner city strip that has quickly cemented itself as the epicentre of Sydney's nightlife and live music scene, as patrons have migrated from the faded lights of Kings Cross towards the cosmopolitan streets of the inner west.

But owing to the whims of government bureaucrats, a 1.7-kilometre stretch of Newtown's famous King Street falls within the crosshairs of two council districts – the Inner West council and the City of Sydney – leaving shops, pubs and bars subject to different rules and regulations depending on which side of the street they are located.

The Inner West Council voted unanimously on Tuesday night to harmonise the regulation of the street with the City of Sydney, which could see late-night trading permitted along the whole street, as well as the legalisation of arts and music in shop fronts without council approval.

"I want to ensure that common sense prevails over red tape and bureaucracy and create one level playing field for all businesses to unite King Street," Inner West Council mayor Darcy Byrne said.