Amendments to Cape Town's liquor by-law are being tabled in the provincial legislature on Wednesday.
Under the new regulations, businesses and places of entertainment will only be allowed to serve and sell alcohol until 2am.
However, more permissive hours of trading are proposed for casinos, hotels and guest houses.
Cape Town Mayor Patricia De Lille said alcohol abuse remained top of mind when proposing amendments to the law.
"Forty three percent of firearm related deaths are linked to alcohol. Fifty four percent of assaults with a blunt object had alcohol as a factor."
Meanwhile, a recent survey showed fewer South Africans were driving under the influence.
The survey by alcohol distributor, Brandhouse, found that more drivers decided not to get behind the wheel after a few drinks.
However, the Road Traffic Management Corporation (RTMC) revealed more than 17 000 motorists were arrested for drunk driving in 2011.