A two-year approval for the pop-up village – a collection of eateries, a rooftop bar, basketball court, and small square in West Basin – was due to expire in early September.

The government applied to keep the village going for another two-and-a-half years, but the National Capital Authority has instead given Westside a temporary extension, until New Year's Day.

Until then, the NCA will begin community consultation and conduct a "wider-assessment of the planning merits" of the government's longer-term future of the village.

"Assessments will also be made on the overall management of the site to date in relation to its activation, presentation and public safety compliance consistent with its prominent location," a spokeswoman for the authority said.

The pop-up village has had a troubled past. Critics have labelled it an eyesore, and there were significant delays and complaints during the construction phase.

The government took control of the site in August last year, and has since improved the amenity and sought to boost patronage, including through a series of weekend events. It has spent $90,000 this year on event management and community engagement at the village.

The Land Development Agency, which has responsibility for the site, said Westside had become a "destination for Canberra", with steady patronage and strong numbers for special events, including family fun days, the last of which attracted 2800 people.

The weekly markets attract an average of 1500 people, and 19 one-off events since 2015 had attracted 57,640 people.

Economic Development director-general David Dawes said the application to keep Westside operating until March 2019 outlines the government's vision for Westside as an "urban play space".

"A seasonal program of events and food has been proposed," Mr Dawes said.

"Signage, events, produce and marketing will utilise Canberra's distinct seasons with all aspects of the precinct reflecting the current season. Food vendors will be encouraged to embrace the produce of the season incorporating herbs, fruits and vegetables into their dishes."

One Westside vendor, Habibiz takeaway owner Walid Ajaj, said his business was doing well, despite the expected downturn due to winter.

He said the project had enormous potential, and was well-liked by the patrons who attended.

But Mr Ajaj said the container village needed to be better promoted by government, saying many Canberrans still had no idea what it was.

"I had people thinking it was a detention centre. I had people thinking it was just some sort of golf course," he said. "People think different stuff because they don't know what's down there.

"But when they come to the space, they are loving the space."