Control areas for Airbnbs and other short-term lets will be considered for the whole of Fife and not just the East Neuk.
Councillors have agreed there are pressures on communities from St Andrews to Kincardine, as well as the popular coastal villages.
And they have now decided to explore opportunities brought by Scottish Government legislation that came into force on April 1.
A report on the entire process will be brought to a future meeting of the policy and co-ordination committee.
However, a final decision could take some time.
‘We want to create a balance’
The move follows a motion by Fife Council’s Liberal Democrat group calling for particular challenges in the East Neuk to be looked at.
Their call prompted a debate locally where there are a significant number of short-term holiday lets.
Many villagers feel they are being priced out of the market by holiday home-owners who snap up property at well above the asking price.
However, holiday let owners say they are being used as scapegoats for a wider property boom.
Lib Dem councillor Bill Porteous, who proposed the motion, said he had great sympathy with both sides.
And he added: “We want to create a balance between tourism and the local community.”
Villages under pressure
The council’s Lib Dem leader Tim Brett cited Elie as one example of a village under pressure.
“In the winter months you struggle to find anyone at home because so many of the properties are second homes,” he said.
“That has a knock-on effect on shops, businesses and the school where numbers have dropped significantly.
“Therefore the community is quite rightly concerned about viability in the future.”
However Mr Brett added: “We’re quite happy to accept there may be other areas like St Andrews and other parts of Fife where this is also a problem.
“And we fully accept a lot of work needs to be done to make the case.”
Issues from St Andrews to Kincardine
Labour councillor Altany Craik said the issue of short-term lets was wide-ranging and affected the whole of Fife.
“We’ve issues from St Andrews to the East Neuk and right down to Kincardine,” he said.
“Particular areas will feel it more acutely than others so it’s not a one size fits all.
“We’re still waiting for important guidance from the Scottish Government.
“And we need to get to the nuts and bolts of how this has to be done.”
Meanwhile, SNP councillor John Beare said it wasn’t yet known exactly how the legislation would affect holiday let businesses.
“Holiday lets that have been in existence for several years may not fall under any new policy,” he said.
“We’re proposing a sensible and serious timetable that would enable us to consider all the issues.”