They claim there has been an unintended impact on their business, driving customers away.

The small army of Police Auxiliaries arrived in Katherine this year to tackle alcohol-fuelled crime and antisocial behaviour.

Led by Mayor Fay Miller, Katherine called for the return of police to the town's liquor outlets in a letter to the NT Government in December 2017, following a town-wide increase in alcohol related crime.

The move has put police back on the frontline armed with some of the toughest alcohol reforms in Territory history.

In a town overflowing with chronic problems, and in the midst of an economic crisis, one resident, in January, questioned the NT Government's decision to allocate millions to the squad.

"It seems a strange time to have so many people doing a job the business itself should be paying for," she said.

This isn't the first time the use of liquor inspectors has come into the firing line, with wages alone estimated to cost more than $1.5 million each year for the Katherine team of 22.

There are more on the way yet.

Katherine caravan park owners are questioning the need for liquor inspectors at their small shop which sells about two boxes of VB a day.

While good for security, owners of the Boab, Belinda Biddle and Glenn Amato, say the police presence is a deterrent to travellers and a waste of taxpayers money.

"We maybe sell one or two blocks of VB, a box of chardonnay and occasionally a six pack to tourists, sometimes a bottle of wine," Ms Biddle said.

Despite this, a liquor inspector is stationed, with a chair and a table, inside the shop ready to check IDs for about three hours every day, more on a Saturday.

There are sometimes up to three police cars parked out the front, the Boab owners said.

The Boab Caravan Park owners only recently took over the caravan park and said they are losing business in this tough financial time.

"We have people who have driven by because of the police security," Mr Amato said.

"When people see [a police car] parked out the front they immediately assume something is going wrong.

"We have had a lot of confusion and people who are wary to stay here, as well as complaints about having to provide their ID twice and answer questions to buy alcohol.

"It is a bit of a deterrent and we have had to convince visitors it is all okay."

Katherine Superintendent Daniel Shean, said the liquor inspectors are here to stay following positive reductions in alcohol related crime and violence.

"The Northern Territory Police Force is committed to minimising the range of harms associated with alcohol misuse through supply, demand and harm reduction strategies.

"An integral part of reducing secondary sale and supply of alcohol in Katherine has been the police presence at takeaway alcohol outlets.

"When sustained, the presence of Point of Sale Intervention has proven to significantly reduce the levels of alcohol related harm in the community; including domestic and family violence and public anti-social behaviour."

"The activities of the Police Auxiliary Liquor Inspectors (PALIs) support the efforts of the NT Police to provide a safe and resilient Northern Territory.

"The police presence at the takeaway outlets has become a familiar part of the Katherine community; deployment across all takeaway bottle shops and drive through bottle shops regardless of hours of trade is intelligence informed, evidence based and ensures a fair approach to POSI."

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