The ACT's Population Health Minister is working on laws to remove penalties for the personal possession of single-use, nicotine-containing vapes.
Emma Davidson said she was working on a bill, which would bring penalties in line with those for people caught in possession of small amounts of illicit drugs.
Under current laws, people can be charged thousands of dollars for having nicotine vaping liquid without a prescription.
"The ACT sees drug use as a health issue, not a criminal one," Ms Davidson said.
"We know that a prohibitionist approach to drug policy doesn't work. Telling people to not use drugs doesn't stop them from using drugs and vaping is no different."
Under ACT laws, possessing nicotine vaping liquid without a prescription can result in a fine of up to $32,000 or two years imprisonment. The penalty is not enforced, though.
This penalty is far greater than if a person was caught with 1 gram of heroin, which is a $100 fine.
People can also opt to take part in a drug diversion program, with early results from the decriminalisation suggesting most are choosing this.
The ACT's peak body for drug harm reduction is also urging the government to stop criminal penalties for people who purchase e-cigarettes or e-liquids without a prescription.
The Alcohol Tobacco and Other Drug Association ACT said penalties for the possession were at odds with the territory's recent drug decriminalisation laws.
Under decriminalisation laws people are able to possess small amounts of illicit drugs without facing criminal penalties.
ATODA said, in a pre-budget submission, it supported the ban on the import of single-use e-cigarettes but not criminal penalties for personal possession.
"We strongly suggest that resources are instead directed towards population health campaigns with a focus on tobacco cessation and additional supports for people who want to quit non-therapeutic e-cigarette use," the submission said.
Ms Davidson said she was working on a bill to remove penalties for personal possession.
"I am working alongside community experts in drug harm reduction to introduce a bill to amend the ACT's laws to remove penalties for personal possession," she said.
"The ACT government is currently investigating which legislative changes will deliver the best health outcomes for people in Canberra.
"As part of this, we will also put in place the right health and social services support for people who vape, particularly young people."
Ms Davidson was been critical of the approach to vaping taken by federal Labor, saying it was inconsistent with the territory's approach to drug use.
The federal government has been cracking down on the importation and sale of non-prescription vapes.
Federal Health Minister Mark Butler introduced legislation in Federal Parliament last month banning the sale of single-use and non-therapeutic vapes.
It would stop the importation, manufacture, supply and commercial possession of disposable single use and non-therapeutic vapes.
People would still be able to access vapes in pharmacies, with a script from a doctor or nurse practitioner.
Australia has already banned the import of single-use and non-therapeutic vapes.
The proposed laws would introduce tough penalties, with offenders facing up to seven years in jail or be slapped with fines of up to $2.2 million.
