The council may also join other councils to create a working group to deal with psychoactive substances, such as party pills and herbal highs.
The Psychoactive Substances Act 2013 took effect in July and means policy can be created to restrict where party pills can be sold.
The idea for the Toast Martinborough liquor ban came from pressure by the police, event organisers and the public, to address their concerns about disorderly behaviour in public areas during the festival. It is the first application for a liquor ban for this event.
The ban would apply from 2pm to 8pm on November 17.
In a letter to the council, Featherston police sergeant Kevin Basher said at past events, police had noticed an increasing number of people using the areas to continue drinking alcohol.
He said other people, not attending the festival, were "loitering about" the square drinking and at times becoming involved in disorderly behaviour offending. "It has a negative impact on the event. This type of behaviour can very easily escalate into serious disorder, leading to fighting and assaults."
In the police's experience, he said glass bottles could be used as dangerous weapons.
The festival organisers also supported the police's view.
"It was evident from last year that there was an unsavoury element positioning themselves in the square who were not associated with the festival," said Rachael Fletcher, the festival's general manager.
She said people in the square were disorderly and insulting at last year's festival. "As the general manager of Toast Martinborough, I am very much supportive of a liquor ban in the square as this will protect festival goers and the public alike."
The area to be covered by the ban would include the Martinborough Town Square area, bounded by Strasbourge St, Ohio St, Cork St and Naples St, and include Cambridge Rd, Jellicoe St, Texas St, Kansas St, Kitchener St and Oxford St, which enter the square.
The open council meeting tomorrow starts at 9.30am.