Canberra families have taken their final ride around Lake Burley Griffin in kitsch pedal bikes, with the bicycle hire shop closing this weekend after 40 years as a lakeside fixture.

The bike hire business, originally known as Mr Spokes, has offered locals and tourists a cheap and fun way to see the capital since 1976.

But the business was recently purchased by the ACT Government and the owners forced to close up shop to make way for a new development.

On Sunday, many families took advantage of a sunny autumn day to take their last ride around the lake on the four-wheeled bikes.

While many expressed disappointment for the closing of a Canberra institution, many did not know that Mr Spokes Bike Hire was actually started by a woman.

A Canberra Times article on October 12, 1976 named the woman behind Mr Spokes Bike Hire. ( Supplied: Trove )

An article from The Canberra Times in 1976 revealed that Veronica Ayers, of Yarralumla, had established the business "near the Acton ferry terminal" on October 2, 1976.

"Raised in Sydney, where she saw more than 400 bicycles being hired each weekend at Sydney's Centennial Park [Ms Ayers] decided the idea had potential for Canberra," the article said.

As the article states, back in the 70s, hiring a bicycle for an hour would set Canberrans back $1.50.

Current bike hire operator Jason Chaytow said a lot had changed in 40 years, with rental now costing $20 per hour and sightseers even able to travel around the lake on Segways.

But Mr Chaytow said Sunday's demand for the traditional, manual options proved families still preferred some old-fashioned fun.

"It's a good bonding experience for the family and everyone seems to leave with a smile on their face, so you can't ask for more than that," he said.

Bike hire closure marks end of an era

Fiona Bartell said it was a "special treat" to take her family for a trundle around the lake on the pedal bikes on Sunday.

Back in the 70s an hour's rental would set Canberrans back $1.50. ( Supplied: Trove )

"It's a great way to get families out and being active on the weekend," she said.

"It's low cost and you get everyone out together in the sun. We've got lots of friends that come out and do it as well.

"I think it's terrible [that it's closing]."

Her daughter Charli said she was also enjoying the day out with her family.

"We are looking at how deep the lake is, the ducks and the swans," she said.

From her passenger seat at the front of the bike she said she especially enjoyed waving and "saying hi" to everybody they passed.

Along with the bike hire business, the nearby Westside container village also saw its last day of trading on Sunday, it too being earmarked for development as part of the Government's City to the Lake project.

The controversial pop-up village, built mostly out of shipping containers, missed several opening deadlines and was once described by WA Senator Glenn Sterle during Senate Estimates as "look[ing] like the beginning of a detention centre".