Businesses in Tenby are to be encouraged to become more continental with plans to develop a café quarter in the Pembrokeshire resort.
Work is set to start in January at Tudor Square
Work is set to start in the new year to narrow roads and widen pavements as a part of a make-over of the old walled town.
Pembrokeshire Council wants to reduce the number of cars in the town centre and says the scheme will compliment its summer traffic ban.
Cabinet member Brian Hall said the aim was to make Tenby more visitor friendly.
"The Welsh Development Agency has said it is willing to make a major investment in Tenby if the walled area becomes pedestrianised," he said.
"Over the last two summers we have had a trial pedestrian scheme and we will be looking at doing something similar this year.
"The aim is develop a café culture where people can sit outside and be able to walk safely in the streets."
New paving stones will be laid and there will be more lighting, seating and bins, he said.
Café and restaurant owners would be encouraged to provide tables and chairs outside.
Mr Hall said work would start in January but would only be done outside of the busy tourist season.
An exhibition at the De Valence Pavilion which opened on Monday is allowing residents and businesses a chance to put forward their views, he added.
People living in the walled area, who have opposed the council's traffic ban in the past, have given the scheme a cautious welcome.
Alistair Mackay of the Walled Residents Association said: "This creates the opportunity to put some order into the present traffic management throughout the year.
"This association fully backs the principal of pedestrianisation as a way of helping to solve Tenby's traffic problems and provide a more pleasant environment for tourists.
"However, we feel last year's scheme was too restrictive and have called for residents and harbour users to be given access."
Mr Mackay also said the council needed to invest more money in the multi-storey car park to encourage more motorists to use it.
He also said he was not convinced there would be enough loading and disabled parking bays.