Coffs Harbour City Council is waiving fees in the city centre, to make it more attractive for traders to open up more outdoor dining and merchandise displays.
Buskers and performers will also benefit from the cuts, in effect now until the end of March.
Council released a statement on the decision, suggesting that replacing current footpath permit and licencing rules would be a more common sense approach aimed at making the city centre more entertaining.
Those who experience difficulties getting around have also been consulted, to ensure they aren't obstructed by diners or performances.
The trial could be extended to all of Coffs should the city centre trial be deemed successful, more details at coffsharbor.nsw.gov.au