The Westside container village on the shores of Lake Burley Griffin will be forced to shut in a years' time after a request for it to remain open for another two and a half years was knocked back.

The pop-up precinct near the lake's west basin was designed by the ACT Government as a temporary part of the City to the Lake project.

But the land is controlled by the National Capital Authority (NCA) under federal planning laws.

Today NCA chief executive Malcolm Snow said in 12 months, it would be the end of the line for Westside — despite an ACT Government request for it to remain longer.

"That will be the last time we would consider and indeed approve any extension," he said.

Since the village opened, it has hosted a number of street food vendors and a range of events including markets and music festivals.

Shops and cafes inside the Westside pop up village in 2015. ( ABC News: Clarissa Thorpe )

Earlier in the year the NCA asked the people of Canberra to put forward their views about the site.

The NCA received 62 submissions, of which 42 submissions did not support the ACT Government's proposal for the future of the village, and 20 submissions and two petitions did.

"It wasn't an even split of views, it was certainly a majority view that people felt that the facility was not appropriate," Mr Snow said.

"The original proposal was for a temporary facility and we just felt the period being sought was just simply too long."

NCA doing 'right thing' by business owners

Westside has hosted several markets and festivals since opening. ( ABC News: Clarissa Thorpe )

Today's decision means the village has been given a year-long works approval, during which the ACT Land Development Agency will need to continue to maintain its presentation.

Mr Snow said by November 2017 the facility will have been there for nearly three years.

"And we think that's sufficient time for the ACT Government to achieve what it set out to do, which is activate, for a period of time, that part of the foreshore," he said.

Mr Snow said the NCA wanted to "do the right thing" by the small business owners at the site.

He said he believed the decision gave them ample time to consider relocation options.