The Land Development Agency announced vendors will effectively operate rent free for the first four months of 2017 and vacate the site by the end of April in a bid to avoid the winter slowdown.

Just weeks ago, the National Capital Authority knocked back the government's request for a further two-and-a-half years on the site, giving it just one year or until November 19, 2017 for the structure to be completely removed.

LDA chief executive David Dawes said vendors were required to pay rent in full up until the end of their current lease on December 31, but the government had decided to charge only nominal rent in the new year.

"Our discussions with Westside vendors made it clear that while they would have preferred to stay for a few more years, the majority didn't want to continue through the slower winter months with no long-term reward at the end," Mr Dawes said.

The time it would take to remove the structure and restore the site to its previous condition left just a small window for warm weather trading.

"As the venue and event manager will not be staying on past the end of this year, and the government will not be engaging in any extra promotion during Westside's final few months, it is appropriate that the remaining vendors are only charged peppercorn rent for this period," Mr Dawes said.

Visitors to the container village, which has been dogged by problems throughout its two-year history, are left without any clear indication of when traders will relocate.

The government's plan allows vendors to move onto month-to-month leases and continue to trade in 2017 but leaves it open for vendors to close their doors at any time before April.

Mr Dawes said Westside was always intended to be a temporary venue and it had brought life to an area previously used for car parking.

"The construction of a 150-metre boardwalk and the new Point Park, adjacent to current the Westside site, will provide another attraction to encourage people to spend time in West Basin after Westside is removed."