Instead, drivers will be required to take a practical driving test.
City council voted 6-1, Tuesday, to remove the six-month residency requirement from the Livery Licence bylaw.
Coun. Alan Woytuik and Coun.Bob Brooks suggested, if the wait clause was going to be removed, the driving test would have to be written to ensure it is adequate to examine new drivers.
"The test should be ready to go before we remove (the six-month residency requirement)," Brooks said. "I'm not in favour yet of removing this clause until I see a test that is suitable to replace it."
Coun. Kevin O'Reilly wondered how they could possibly have a test ready, should the bylaw pass and become effective immediately.
It was subsequently decided that the revised bylaw would be implemented Jan. 1, although Coun. Brooks suggested Jan. 31 might be more appropriate.
Doug Gillard, the city's bylaw enforcement manager, said his department was waiting for direction from administration before proceeding with development of the test.
He said sections testing geography, history and tourist attractions could all be included.
"We haven't consulted with industry yet because we want to get clear direction on where this test is going," Gillard said.
Two out of three existing cab companies are opposed to the move to drop the six-month requirement.
Fadil Memedi, a representative of City Cabs, earlier told council removing the clause would leave the industry subject to drivers looking to make a quick buck without properly knowing the area.