South Holland District Council is gathering evidence to see if there are grounds to restrict numbers of new off-licences in Spalding.
The review could result in a Cumulative Impact Policy being adopted for one or more areas in town.
A council spokesman said the review is due to be completed this month.
He continued: “Once this has been finalised a report listing findings and recommendations will go before a meeting of the Licensing Committee on October 18.
“A decision will then be made based on the evidence provided by the responsible authorities and interested parties with a requirement to resolve a specific set of issues.
“Where evidence supports restricting the growth of businesses licensed to sell alcohol, it will be referred to legal scrutiny that the evidence is robust, rebuttable and proportionate to deal with the identified objectives.”
As the law stands, licensing authorities can only turn down applications for off-licences where there are objections from authorities like Lincolnshire Police or Trading Standards. Objections are usually raised on grounds where licensing objectives are likely to be undermined, for example by criminal behaviour.
Half-a-dozen Spalding off-licences have lost their licences to sell alcohol, some through being found by the council licensing panel to have been involved in the sale of illegal cigarettes. Mini Poli, the former China City restaurant, has withdrawn its recent application to sell alcohol.