Weeks after a new sign was installed at the intersection of Addison Street and Harbour Boulevard in Shellharbour, lettering directing motorists towards a "dining precinct" in Shell Cove has been painted over.
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When unveiled earlier in December, the signs drew the ire of Shellharbour Village business owners and the local state member.
RawR cafe owner Andrew Rosengaus described the original signs as a "kick in the guts" but said he was happy that the council had made the change.
"I've heard feedback from the community that the signs, after they've been fixed, are better," he said.
The indication to Shellharbour Village, Shell Cove Town Centre and Shellharbour Marina remain, however what appears to be a new line of paint is in place of the "dining precinct" lettering which pointed towards Shell Cove.
At the time of the sign's installation, Shellharbour MP Anna Watson said already struggling businesses in Shellharbour Village were losing customers to the newly opened cafes and restaurants in Shell Cove.
Seeing the updated sign, Ms Watson said "common sense had prevailed".
"Council have realised the mistake that they've made by redirecting traffic to Shell Cove. I'm pleased that they understand that there are businesses struggling in the Village, and they've done the right thing."
Shellharbour City Council was contacted for comment.
The removal of the lettering represents a change of tack for Shellharbour council, which told the Mercury when concerns were first raised that another half of the sign would direct visitors to Shellharbour village and that only half the sign was completed.
Instead, "completion" of the sign appears to involve covering up the most controversial element.
The signs are being installed by the joint venture between Shellharbour City Council and Frasers Property Australia which is developing The Waterfront precinct.
However, Ms Watson raised concerns that the signs, which are branded The Waterfront, Shell Cove, lay outside the project boundary on the northern side of the intersection, on land managed solely by Shellharbour council.
"They've taken a lot of liberty by just putting up signs redirecting traffic in areas they don't have any jurisdiction over in the front instance," she said.
"Where they put those signs is not Shell Cove, that is Shellharbour."
