The bylaw is being considered by San Antonio (Sant Antoni), a seaside town on the west coast of the island, in a bid to clampdown on the booze culture that the resort has become infamous for.
The measures, which have been presented to the council but have yet to receive the green light, will see fines of €750 imposed on tourists caught flouting the ban, even with a takeaway cup of coffee or bottle of water.
"Given how difficult it is for police to differentiate between whether it is alcohol or a soft drink being consumed it is necessary to adopt an outright ban," explained Aida Alcaraz, a town councillor in San Antonio.
"Obviously people will be allowed to consume drinks on the terraces of bars but they won't be able to take the drinks off the premises," she said.
The downmarket resort on Ibiza has a reputation as a party spot among young package holidaymakers, particularly those from the UK.
Last summer, officers from West Midlands Police were sent out to patrol the resort and that of Magaluf on the neighbouring Balaeric island of Mallorca in an attempt to prevent Brits behaving badly abroad.