Potential restrictions on late-night trading in central Parramatta have alarmed restaurateurs and publicans, who fear they could kill the city's nightlife just as it is starting to flourish.

The proposals, which would potentially curb trading to 11pm across sections of the city's eat-street and riverside areas, are an attempt to grapple with the fast-growing residential density of central Parramatta.

Alex Aslan said the proposed policy would turn bars and restaurants into cafes. Credit:James Alcock

But they have received a strong reaction from hospitality interests in the area, who say they risk undermining investment and diminishing Parramatta's appeal as a place to go out.

"They're basically saying you can't have nightlife, entertainment at Parramatta – it's absurd," said Alex Aslan, the managing director of ALEX&Co, a cocktail bar and restaurant recently opened by the Parramatta River on Church Street. "You just have cafes."