Alliance has tabled a proposal at Stormont that would see the Union flag be flown on all council headquarters on designated days.
It follows news that the Ulster Unionists have also proposed an amendment to the Local Government Bill calling for the flag to be flown every day of the year at Belfast City Hall.
The new Bill sets out the arrangements for the 11 new 'super councils'.
A Belfast City Council vote in December 2012 to restrict the flying of the flag to around 20 designated days a year was followed by weeks of loyalist rioting.
Alliance politicians were targeted by loyalists after unionists blamed them for the restrictions.
Alliance MLA Anna Lo said agreeing to designated days was a compromise agreement that recognised Northern Ireland's position within the UK, while acknowledging that we live in a shared society.