Perth and Kinross Council will provide £15,000 funding for a street party to celebrate the reopening of Kinross High Street.
The local authority said the windfall has been granted due to the impact that the controversial works have had on High Street businesses.
Kinross business owners previously revealed to The Courier they feared going under as income was hit and customer numbers plummeted due to road closures and work disruption.
The works began in April and are expected to be substantially completed by the end of September.
A council spokesperson said: “Perth and Kinross Council is providing financial backing of up to £15,000 to Kinross-shire Local Events Organisation (KLEO) to help with the organisation of the ‘Big Street Party’ in Kinross High Street to mark the redevelopment of the town centre.
“In recognition of the disruption caused by the streetscape works the council has agreed to contribute towards the cost.
“The improvements will provide an enhanced High Street in Kinross to complement the tourism attractions at nearby Loch Leven, encourage further private investment in the town centre and enhance the shopping experience.”
Plans for the celebratory street party are still in development. The council funding will be used to support the event, including the provision of a stage and entertainment headlined by the Red Hot Chilli Pipers.
The organisers also plan to have local clubs and street performers throughout the High Street. The event will take place on Saturday October 3 between noon and 4pm.