Actually the municipality cannot restrict fishing. Only the province or the feds can do that. It appears since the previous owners (government) had no problem with locals fishing, it would seem unlikely the municipality would have support for this.
Contact the town, find some sympathetic ears and start talking and making friends. Know who the proponents of the ban are. Ignore them for now until you have your allies in line. Then ask the MNR to help you by pointing you to the right area.
The Fish and Wildlife Conservation Act prohibits the interference of people involved in fishing.
Make sure, though, you have all the facts prior to going off on anyone.
Also enlist the OFAH in this. IF you are in the same Zone as me I have the email addy of the Zone rep. There is alot of municiplaities trying to do this, and there has been alot of success in making them see the error of their ways.
The town can make it a land use issue, but, they cannot simply deny fishermen but allow others access. It is public land and they really can't do it.