Removing historic constraints on the service of alcohol outside in the ACT, officials from the new Access Canberra agency will begin considering applications for venues to provide outdoor bar service, already popular with patrons in other cities around Australia and overseas.

Outdoor bars will be permitted at venues that already have approval for patrons to drink in outdoor dining areas, helping boost customer service and enjoyment as well as improving Canberra's street life, the government says.

Under the plan announced on Monday, new bars will fall into three categories. Those selling pre-mixed drinks and bottled beer, wine and champagne will be subject to a simple application process. Bars selling mixed drinks and tapped beer will require collection containers for waste water and nearby facilities for staff to wash their hands.

Bars selling all kinds of alcohol, including cocktails and drinks involving mixing and blending of ingredients such as fruit and cream will face the strictest requirements, including plumbing, food refrigeration, pest control and a roof and three walls around the bar service area.

Approvals for outdoor bars with the most simple requirements could take just 10 days under the government's plan, including through online applications.

Arthur Gruselle, manager of Beach Burrito Company in City Walk, welcomed the changes, which he said would help bring in more customers to businesses in the city.

"People just walk past, especially in winter, having a bar outside is definitely going to improve business for everyone," he said.

"When people walk past and don't see anyone outside they keep walking. People attract people."

Mr Gruselle said many restaurants provided outdoor heaters for patrons, meaning new bars could operate year round.

He said the changes were one more step towards increasing the amount of customers dining outdoors.

"It's going to help us a lot, that's for sure," he said.

Chief Minister Andrew Barr said the changes would help improve Canberra's reputation.

"We are seeking to further encourage our hospitality sector to innovate and to deliver to the people of Canberra, and to visitors, an enhanced experience by way of lessening regulations.

"It would appear to be a relic from an era long gone. Canberra's had an interesting battle through its history with outdoor dining and outdoor hospitality," Mr Barr said.

The ACT Government’s red tape reduction continues - new laws coming to allow venues to establish outdoor bars. #CBR pic.twitter.com/IT1tvPigiK— Andrew Barr (@ABarrMLA) July 6, 2015

Attorney-General Simon Corbell said the previous restrictions were outdated and unnecessary constraint on businesses and customer service.

The change follows new legislation introduced into the Legislative Assembly last month, as part of a review into the territory's Liquor Act Review conducted in 2013-14.

"This is one area where we believe a lessening of regulation will provide for more responsible behaviour on the part of licensees and will encourage people to get outdoors in the warmer months and enjoy our hospitality venues," Mr Corbell said.

"It is about striking the right balance between an urban environment that people want to get out into and enjoy but also making sure they are able to do that safely."

Mr Corbell said there was no risk of increased visibility of alcohol in the community. Under related changes, the supply of alcohol to under-age drinkers at private places without parental permission will be illegal.