Petersham’s Oxford Tavern will now be home to a roster of live music and DJs into the early hours of the morning thanks to an extension to its live entertainment license.

Until now, the inner west favourite had a special condition on its liquor license that banned it from hosting any live entertainment after 11:30pm, despite the venue sitting outside of Sydney’s hotly-contested lock-out area.

But Liquor and Gaming and NSW Police Licensing have approved an extension on their live entertainment license until 3am, effective immediately.

“Live music is integral to the cultural tapestry of any great city and pubs have a great history in providing a platform for new artists to cut their teeth,” said Oxford Tavern’s co-owner James Thorpe.

“We’re beyond thrilled that we are now able to offer live bands and DJs until 3am and can play our part in nurturing the creativity and connection that late night live music creates”.

James and Josh Thorpe, who also own Darlinghurst favourite The Taphouse, acquired the pub in January and set about restoring the legendary venue almost immediately. They’ve since introduced a list of local and independent brews, rejigged the food menu and brought live music back to the pub via free weekly sessions and weekend DJ sets.

The news comes just ahead of Sydney councillors deciding on city-wide reforms to late night trading that hope to reward some “low-impact venues” with increased hours of live entertainment trading in areas including Alexandria, Barangaroo, Green Square and Walsh Bay.

A 24-hour trading bid for Sydney’s CBD will also be considered.

The reforms hope to reignite the city’s  $4 billion night economy, which has taken a hit since lockout laws were introduced. They’re also hoping to encourage performance, culture and foster community in new areas such as Barangaroo and Green Square.