Australian businesses will be able to register commercial geographic domain names such as stkilda.com.au and bondi.net.au from 1 June.
The domain names had previously been restricted but were released following a 2004 public policy review by the .au Domain Administration (auDA).
auDA Chris Disspain CEO, said in a statement that following the review process, the auDA Board felt that commercial geographic domain names were useful and should not be restricted.
"auDA has decided that the fairest and most effective way of releasing these names is by way of a ballot," he said.
Where only one application was received for a domain name, that applicant would be the winner, according to auDA. For multiple applications, the winner will be selected at random. The ballot winner would have to pay a release fee of $825 in addition to the cost of registering the domain.
The company said funds raised from release fees would be used to support the release of community geographic domain names.
Eight new second level names in .au would be created later this year representing each state and territory, the organisation said.
Not-for-profit community groups would be able to register their geographic name at the third level, for example dubbo.nsw.au and goldcoast.qld.au.
auDA is a not-for-profit company that is responsible for operating the .au domain.