The Invercargill Licensing Trust will no longer proceed with plans for a family-friendly "container bar" concept in Wachner Place.

ILT chief executive Chris Ramsay said the trust had been trying to work through an easement issue that directly impacted where the container bar would be located.

"Unfortunately we haven’t been able to resolve this issue with the landowner.” he said.

When the concept was announced in February, Mr Ramsay said the proposed container bar development was designed "ultimately create a space for all to enjoy."

"...somewhere fun and funky where parents feel comfortable bringing their children.”

The proposal featured barista-made coffee, craft beer and wine, as well as a shared food service for visitors to order from nearby food outlets.

It was a "real shame" the proposal wouldn't become a reality for Invercargill, Mr Ramsay said.

"We were excited to embark on another new food and beverage concept for the city - one which would have activated Wachner Place and added to the vibrancy of our city.

“Despite this result, we will be continuing to initiate projects with the aim of positively impacting Invercargill’s hospitality industry.”