The Roberts St pedestrian mall will create people and cycle-friendly spaces between the retail area and the lake, with the possibility for increased outdoor dining.
A key part of the pedestrian mall design is the closure of the northern end of Lake Tce, and traffic from Tongariro St being redirected onto Roberts St, making Roberts St between Ruapehu St and Tongariro St one way.
In making the decision to approve the Roberts St mall, mayor David Trewavas said council had listened to businesses who wanted sufficient parking so customers could access the town centre.
"I can assure you, we are looking at the best ways we can incorporate additional parking, particularly on Tongariro St, as part of our finalised designs," Mr Trewavas said.
He said council would continue to share their plans with the community and stakeholders and are actively encouraging feedback on what is being proposed.
"It is absolutely a priority for us to bring the community along on the journey and ensure we are listening to what they are telling us," said Mr Trewavas.
The decision is subject to a one-month appeal process.
