The State Government has approved a Lower Eyre Peninsula District Council request to make the whole town, including the lookout, a dry zone from 5pm on December 31 to 9am on January 1.

The Coffin Bay Progress Association approached the council to ask for a dry zone and the move was supported by the council, local police and Member for Flinders Liz Penfold.

"In the last few years we've had a startling amount of bad behaviour there on New Year's Eve," Crime Prevention Sergeant Rene Steen said.

Last year a girl was nearly seriously injured when a boy did a burnout, throwing up a big rock that hit her in the face, and underage drinking and general unruly behaviour is a recurring problem, Sergeant Steen said.

He said the biggest problem area was around the jetty where there is a lot of underage drinking.

Lower Eyre Peninsula District Council chief executive officer Rod Pearson said one of the things the council was trying to avoid with a dry zone was people taking underage children out to Coffin Bay and leaving them there for the night unsupervised.

"If people want to come here they can go to someone's private residence and still enjoy New Year's Eve."

Under the dry zone legislation people will only be able to drink alcohol at licensed premises, like the hotel, or on private property, including the caravan park.

Police will be patrolling the dry area and anyone found with a container of alcohol that has had the seal broken will face a $190 fine on the spot.

Further up the coast the Streaky Bay foreshore will also be a dry zone on New Year's Eve.