Caerphilly County Borough Council is to extend free car parking in Bargoed until after Christmas.
The council introduced two-hour free parking at the Emporium and St Gwladys Road pay and display car parks at the end of last year to help boost trade in the town while redevelopment work took place.
The free parking was originally only going to continue until this month. The council has now decided to extend that until after Christmas.
Councillor Rob Gough, cabinet member for transportation and planning, said: “We are keen to support the local retailers and we recognise the difficult trading environment that businesses in Bargoed are facing.
“This has not been helped by the amount of construction work currently underway to help regenerate the town centre, so we feel this is an appropriate step to help support the local economy and boost trade.”
The ongoing developments in Bargoed town centre have led to a reduction in the number of parking spaces available to shoppers.
Parking is already free in the main Hanbury Road car park at the rear of the High Street.