New parking restrictions are being planned for Fahan Street in the Bogside.
The Department of Regional Development is proposing that motorists should only be able to park in the street for one hour at a time.
A spokesman for the DRD said the restrictions are currently being considered.
“Roads Service is proposing a one hour in two waiting restriction on one side of the road where there are currently no restrictions,” he said. “A notice of intention will be published shortly.”
The lower Bogside area is in line to become the first area in Northern Ireland to have a residents only parking scheme.
Triax Neighbourhood Management team spokesman Colm Barton said they they supported anything which helped ease the problems of residents in the area.
“We can only welcome anything which is designed to help the local community,” he said.
“But the best way to manage the parking problems of the lower Bogside is to fast track the residents parking scheme which is currently before the Minister.”
Currently there are no restrictions on the city centre bound side of Fahan Street, making it a popular place for motorists to leave their cars and avoid paying car-parking charges.
TNMT have been pushing for a residents only parking scheme for the lower Bogside area for over a year.
They argue that the area is taken over during the day by people working in the city centre, using it as a free car park.
Their proposals for resident only car parking are to introduce it from 10am to 12noon and from 2pm to 4pm to combat the problem of city centre workers parking all day long, eventually extending it to a 24-hour scheme.