The owners of a proposed Merewether brewery and eatery say the venue will not be a "pub" or "brewpub".
Grant and Jaz Wearin, who live in Merewether, have lodged plans to build a microbrewery and "artisan food and drink premises" opposite Lingard Hospital.
The couple's Modus Operandi brewery in Merewether Street would serve up to 300 patrons until midnight on Fridays and Saturdays and 10pm on Sundays and up to 200 customers until 11pm the rest of the week.
Modus Operandi runs a similar business at Mona Vale which labels itself as a "brewpub", but Mr Wearin told a Newcastle council public voice session on Tuesday night that the Merewether venue would be a "manufacturing facility".
The brewery plans to offer public tastings, tours, workshops and special events in addition to its standard food and drink offerings.
Asked why it needed a capacity of 300 patrons, Mr Wearin said the numbers would allow the brewery to accept bus groups.
"We have reduced the numbers in consultation with council," he said.
"The reason for those numbers is simply because of the capacity for us to attract tourism to the area and the form of that tourism.
"Beer tourism is the fastest-growing tourism component in Australia right now. People pay to see breweries."
He said the Mona Vale site had not received a complaint about noise or anti-social behaviour in six years.
Residents Fiona Gray and Thais Miles addressed the council in opposition to the brewery, arguing neighbours would be subject to noise, anti-social behaviour and parking problems.
The plans attracted 40 submissions, all but one of them negative, when they went on public exhibition.
Ms Gray noted similar operations in Sydney's inner-west closed at 8pm, and council staff have recommended the venue's outdoor areas should close at 10pm.
Meanwhile, the council approved a veterinary hospital on the ground floor of the Oceans Reach apartment complex in Llewellyn Street, Merewether, after the applicant agreed to delete overnight cat boarding from its plans.