Proposals have been put forward for prospective new cabbies to undertake The Knowledge in Merthyr Tydfil.
As well as undertaking a local kno test, drivers would also be tested on literacy, numeracy and safeguarding.
The new scheme will cost any prospective taxi or PHV drivers £45.
Taxi and PHV drivers who currently hold a licence in the area will remain licenced, but may have to take a test when their licence is up for renewal.
The local council have claimed that there may be a loss of revenue, due to drivers wishing to exploit the lack of cross-border hiring legislation, being unable to ontain a licence in Merthyr Tydfil because of the tightening up of regulations.
The policy change took place because of the review into safeguarding procedures following the Casey report into child sexual exploitation in Rotherham.