Wairoa District Council interim chief executive Kitea Tipuna said the development and purpose of the LAP was about giving their community greater control over the location and licensing conditions of liquor outlets.
"Its development is about setting licensing standards that are relevant to the needs of the community," she said.
The policy came into effect following a public consultation period with the Wairoa community, HB DHB, NZ Police and licensing inspectors.
The LAP provides guidance on the promotion of safe and responsible sale, supply and consumption of alcohol.
The policy's purpose is to encourage licensed premises to foster positive, responsible drinking behaviour and minimise alcohol-related harm.
The key components of the LAP are the decrease in operating hours and an off-licence cap (excluding supermarkets).
"The decision to reduce operating hours was based on information presented to Council based on the Community harm effects of longer off-licencing hours," Tipuna said.
She said the Council went through key documents and statistics to help refine the policy.
There's no beers at the school fair now - another component of the LAP was banning special liquor licences for child-focused events.
In the policy it states: "A child-focused event is an event that is centred around minors.
This includes but is not limited to galas, children's sports games, school kapa haka events, etc."
Wairoa is the first place in Hawke's Bay to ban alcohol licences around such events.
Wairoa College principal Jo-Anne Vinelle said she fully supports the new policy.
"This is another way that we can support our young people and community," she said.
"During my time at Wairoa College we have never had school events which have had alcohol available."
Hawke's Bay District Health Board Medical Officer of Health Dr Rachel Eyre said alcohol consumption was associated with more than 200 disease and injury conditions.
"It's important as adults we lead by example and encourage positive role modelling by showing young people they can have fun at any event, free from the promotion, marketing and normalisation of alcohol," said Dr Eyre.
The LAP's and Wairoa's actions to reduce alcohol harm to prioritise the health of their community has also been commended by Alcohol Healthwatch executive director Dr Nicki Jackson.