Setting the casino aside, the government has started to walk back some restrictions.

After a 2016 state review, a pilot program now allows some venues to extend their hours by 30 minutes. Liquor store sales in the lockout zone are now permitted until 11 p.m., not 10 p.m.

There are also signs of adaptation: A study released in early September showed that small bars are springing back, with a rise in drinking establishments during 2016 and 2017.

Mr. Toole said the government is open to additional changes. The bill being introduced this week would repeal the curfews regulating when people can enter a bar or club. Whether it passes or not, a government-commissioned review and upcoming parliamentary inquiry — along with an election in March — will likely bring out new ideas.

People on both sides of the divide agree that any change to the laws would allow Sydney to send a message — both to the world and to itself — about its future identity.

Less clear is whether a truce can be negotiated between freedom and safety, creativity and practicality.

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