Patrons in Kings Cross venues will not be able to buy shots, doubles or alcopops after midnight on weekends under tough new licensing conditions proposed by the NSW Government.

Eight conditions will be imposed after an audit found Kings Cross pubs and clubs were seriously breaching responsible service of alcohol guidelines.

The audit was sparked by the death of 18-year-old Thomas Kelly last month.

Premier Barry O'Farrell says the audit raised serious concerns that pubs and clubs are not serving alcohol responsibly.

He says under the new conditions no-one will be able to buy more than four drinks at a time after 11pm and venues will have to stop selling drinks an hour before close.

Marshalls will also patrol venues after 11pm to make sure drunk patrons are not being served.

"These requirements are by any measure tough, and frankly, they deserve to be tough," he said.

"These changes are targeted and they are necessary."

"The alcohol and drug-fuelled incidents at Kings Cross and their impact on innocent individuals and their families is a blight on this city."

Pubs and clubs will have until September to respond to the Government's proposals.

Public problem

The Government has stopped short of introducing hotel lockouts, but says it is still developing an overall plan for the precinct.

It has also announced a government-funded anti-binge drinking campaign that will target young men.

"The regrettable and unacceptable conclusion is that at Kings Cross you'll continue to be sold alcohol until you're so drunk, you'll be thrown out," Mr O'Farrell said.

"And then you become a public problem.

"The audit's results makes a compelling case for change about the way in which licensed venues operate in Kings Cross."

A spokesman for the Kelly family, David Anstee, was in parliament when the changes were announced.

"We're all hoping that even though Thomas's death was an incredibly heavy price to pay for change, we're seeing wholesale change that hasn't happened, as I'm being told by the people in this area, the experts in this area, for a long time," he said.

"It's been years in the waiting and I think the NSW Government's just demonstrated that it's making some serious change."