Councillors discussed the proposal at an extraordinary meeting of Horncastle Town Council which has held last Thursday (May 27).
They voted unanimously in favour of allowing Tuckers Funfairs to operate from The Wong from Thursday, June 10, to Sunday, June 13.
Speaking at the meeting, PCSO Nigel Wass said: “We have to be mindful of numbers, parking, possible extra anti-social behaviour.
“I am sure the fair owner will have security staff and the site will be secure.”
Town Councillor Matthew Wilkinson said it was an ideal opportunity for the town.
Councillor Wilkinson added: “We have got an opportunity here - our choice is to accept it and the fair comes or to not accept it and we don’t get the fair.
“We have got an opportunity to engage with this - will there be some problems? I am sure there might be some issues with ASB and parking but all of that generally can be solved and worked through.
“It should be a positive thing. Simply we won’t know until we try.”
Residents are encouraged to walk to the site or park in the centre of town and walk as there will be limited parking available near the fairground.
Residents are reminded that the St Lawrence Street car park, in Horncastle, is free for one hour (with a ticket) and there is no charge after 6pm.
• Hours of operation for the fairground will be 5pm-9pm (Thursday, June 10 and Friday, June 11); 1pm-9pm (Saturday, June 12) and 1pm-7pm (Sunday June 13).
Town Mayor, Councillor Fiona Martin, added: “I just think it is a wonderful thing to have in the town for everyone to enjoy as we come out of lockdown and the kids will love it.”