It says keeping the bars open longer is "not in the public interest and is likely to disturb the public peace."
The liquor regulator reached its decision after two days of public hearings on the merits of the idea.
While it said the idea is not a bad one, it said the proposal itself needed more thought before it could be successfully implemented.
"The design and planning of such an important and sensitive project is lacking," the agency said in its decision released Wednesday.
"A project such as this merits taking the time to reflect and to document its feasibility in the light of similar experiences elsewhere in the world."
The commissioners noted that even city employees who testified at the hearings seemed surprised that there had been no analysis done.
The idea was the brainchild of Mayor Denis Coderre's administration and was aimed at boosting business and tourism.
Nearly 20 bars were going to take part in the pilot project on various weekends throughout the summer.
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