Auckland Council has been told it already has power to ban street prostitution from spots such as Hunters Corner in South Auckland after a bid to get Parliament to change the law failed.
A Parliamentary committee recommended on Friday that a bill which would allow the council to pass bylaws banning commercial sex services in specified places should not be passed.
MPs said it understood why Auckland Council wanted Parliament to change the law, and noted that other councils supported the local bill.
But they felt that a law change was not appropriate because the issue was not limited to Auckland.
The committee also believed local bodies could already regulate street prostitution - despite council officials' advice that they would be open to a legal challenge.