The scheme will run from March to September
Castletown Commissioners has been granted an order for the permanent closure of Market Square during summer.
It means no vehicles will be able to park in the area from 1 March to 30 September every year.
The decision to close the square has been controversial and resulted in a public meeting about the issue last November.
The local authority says it will 'support' a pedestrian friendly environment in the town centre.
It's also confirmed events during the festive period will be subject to a temporary closure order.
Photo ID requirements could create 'faff' at borders, says Steam Packet boss
DHSC minister 'absolutely committed' to reopening Ramsey hospital
Enterprise minister 'optimistic' following challenging period for tourism sector
Plans to protect Douglas Head to be laid before Tynwald in May
Casualty rescued from Polish tall ship