Work is set to start on 10 new parking spaces in the Scotland Road area of Nelson.
It follows campaigning from the Scotland Road Traders’ Association for help in making their businesses more accessible.
The parking will occupy the space between Harry Garlick’s Electrical Shop and the Nawab Sweet Centre.
The work is expected to take three to four weeks to complete.
Coun. Joe Cooney, Leader of Pendle Council, said: “We are pleased to have been able to secure funding totalling £85,000 from Lancashire County Council and the High Street Innovation Fund.
“It’s something the Scotland Road traders have been keen to see happen for a while and will help to bring more activity to that area of Nelson.
“There will be disruption to the area during this period, but please be assured that the businesses will still be accessible to shoppers and that the long-term benefits will outweigh any short-term inconvenience.”
County Councillor Azhar Ali, who has responsibility for Nelson South, added: “The regeneration of Nelson is really important to Lancashire County Council.
“We want to help businesses to expand and make sure the future of Scotland Road is secure.
“That’s why we’ve found match funding and put in extra resources to ensure Nelson gets its fair share.
“This has all been done because we listened to local businesses and fought the corner for the town.”