Provincial court Judge Janet Dixon has heard arguments from lawyers for and against the release but details are subject to a publication ban.
Richard Suter, who is 62, faces charges of impaired driving causing death, impaired driving causing bodily harm and refusing to give a breath sample.
Police allege he was in his parked SUV outside Ric's Grill when he shifted into drive instead of reverse.
Two-year-old Geo Mounsef was pinned to a wall and later died in hospital.
His parents were also injured but his five-month-old brother was unharmed.
A few dozen family members and supporters, some pushing children in strollers, rallied outside the courthouse earlier Thursday demanding the driver remain behind bars.
Many also packed the courtroom later in the afternoon for the bail hearing, wearing yellow and blue ribbons — the child's favourite colours.
"This is ridiculous! This is not democracy!" yelled one man in court before sheriffs escorted him from the building.
The judge warned that she would not put up with outbursts from the public. Several sheriffs were posted in the courtroom to watch people in the gallery.
Earlier in the week, when Suter made his first court appearance, the dead boy's mother lashed out an assistant of the accused's defence lawyer in a hallway. She later sobbed and wailed.
Sage Morin has set up a memorial site for her son on Facebook called Justice for Geo.
She wrote that her son had just overcome his fear of the potty and the family went out for supper to celebrate when they were hit by the SUV.
"Whenever I slow down and close my eyes, I see it happen all over again," she said.
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