Shoppers in Gainsborough will be able to park ‘free after three’ in council owned car parks from Monday, August 1.
The new scheme applies to all six West Lindsey District Council run car parks in the town after 3pm.
It is aimed at supporting small businesses and encouraging people to shop local.
Councillor Sheila Bibb, Chairman of the Prosperous Communities Committee at the Council, said: “We are delighted to be running this campaign, which we hope will support local businesses and extend their trading day by encouraging people to use the town at a time of day which is traditionally quite quiet, encouraging more people into our town centre.
“By offering small changes such as free after three parking, we hope to provide a positive boost to local businesses and a little incentive to shoppers.”
There is currently no end date for the campaign.
The car parks include North Street, Roseway, Lord Street, Whitton Gardens, Ship Court and Bridge Street.
Samantha Mellows, Lincolnshire Chamber of Commerce, said: “Hopefully it will help attract more people into the town centre.”