Rocherlea was not deemed a priority location for permanent CCTV after a trial in 2017, City of Launceston council general manager Michael Stretton says.
A petition requesting CCTV at multiple locations in the northern suburb was submitted to council two years ago in a bid to tackle dangerous driving and hooning in the area.
It led to the council running a mobile CCTV camera trial at Rocherlea in 2017.
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"Discussions with Tasmania Police since have indicated that Rocherlea is not a priority location for permanent CCTV," Mr Stretton said.
The area has again been in the spotlight after a recent spate of deliberately lit house fires in Cupania Street.
MLC Ivan Dean called for a systematic approach to fixing the unlawful activity that had plagued the area for the past decade.
"There's never been any real action by anybody to fix the problem," Mr Dean said.
"You can't just write Cupania Street off. They've got to fix the problem."
Tasmania Police Detective Inspector Gary Williams said police took arson very seriously.
"More often than not, the perpetrators of these types of crimes are charged and put before the courts when information has been provided by members of the public which assists police with their investigation," he said.
"Members of the community often hold the answers to these types of crimes, and are encouraged to report suspicious activity."
Detective Inspector Williams said there were numerous examples of crimes being solved as a result of valuable information being provided by members of the community.
"The community are able to provide information via the online Crime Stoppers portal, by phone to Crime Stoppers or directly to their nearest police station," he said.
"Information can always be provided anonymously."
Report information by calling Crime Stoppers on 1800 333 000 or police on 131 444.