Councillors have voted to issue notices giving campers up to seven days to leave the parklands.
The first notices will be issued next month, but Lord Mayor Stephen Yarwood said the council would not be taking a big stick approach.
"We understand it's a sensitive issue. We certainly want to be respectful in the way that we go about this," he said.
"Council now realistically has a zero tolerance of long-term camping in the parklands.
"It's not an acceptable outcome."
Mrs Clinton arrived in Perth yesterday for annual strategy and policy talks with Prime Minister Julia Gillard, Foreign Minister Bob Carr and Defence Minister Stephen Smith.
At the launch of a new US-Australasian think tank last night, Mrs Clinton gave a speech about the important relationship between the US, Australia and other countries in the region.
The Perth USAsia Centre will focus on economic, cultural and defence strategies in the region.
Mrs Clinton said the US has always had a presence in the region and considers itself a Pacific power.
She said that presence would only get stronger.
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