A Perth council's desperate bid to retain some influence over the development of their struggling town centre by deeming it heritage protected has outraged local residents who argue the move could hinder future development and kill local businesses.

On Tuesday, City of Bayswater councillors voted to install a heritage protection area "intended to conserve and enhance" the Bayswater town centre.

Most of Bayswater town centre's commercial buildings were built in the early 1900s.

It's not clear which streets would be included in this heritage area but it would be centred around King William Street.

The decision followed extensive calls from pro-heritage community groups, who had been advocating for a review of Bayswater's heritage registry since 2015.