UPDATED: 6.29PM The Queenstown Lakes District Council will be issuing $300 fines to the company behind Wicked Campers every time a vehicle is seen in the area.
The council's action comes as the Tasman Council looks to ban the campers from its campgrounds.
Queenstown Council's Lee Webster said they don't comply with the district plan that banned explicit, indecent or offensive signs.
But Council chief executive Mike Theelin said the ban comes with issues.
LISTEN ABOVE: Mike Theelin talks to Larry Williams
"Obviously this is not a straight forward area because the interpretation of signage, and what is offensive to you or me, can be quite subjective".
Theelin said he has received a number of complaints regarding Wicked Camper vehicles.
But Wicked doesn't see the problem, the council said, despite its infamous track record.
Mr Webster said: "We disagree so when we have evidence of a sign-written camper that we believe is sexually explicit, lewd or otherwise offensive, we will issue a $300 infringement.
"That will either be when one of our routine parking patrols finds a vehicle that breaches our rules, or we receive a complaint from the public."
Theelin said the next step will be to go through the courts.
"If they choose not to pay the fines the obviously the Council's course of action is to pursuit them through the District Court".
Members of the public who see Wicked Camper vehicles in the Queenstown area are being encouraged to report them to the Council.