Christchurch city council has dropped a new version of the controversial local alcohol policy.

The council's last attempt to create a local plan outlining where and when alcohol could be sold in the city was legally challenged by Hospitality New Zealand.

Councillor Deon Swiggs says part of the decision was the need for the council to discuss alcohol laws in general with the government.

"We don't want to be stuck in another situation where we get dragged through courts and spend lots of money and get delayed and delayed and delayed because that's not going to deliver any outcome for our communities."

Council staff will instead work with other agencies to gather evidence to identify the issues that could be addressed by a local plan.