Cardigan's indoor market is being transferred to Menter Aberteifi on June1.
The move - which will save Ceredigion County Council £16k a year - was welcomed at this week's cabinet meeting.
"Hopefully Menter Aberteifi will be able to access funding to improve the market which the county council can't," Cllr Gareth Lloyd said.
Local councillor Catrin Miles said the transfer would be welcomed locally.
"I welcome the fact that this opens the door for improvements to such a historic building in the town. There is a lot of work to be done in the market and I hope this can proceed as soon as possible."
Cllr Mark Cole said that traders felt they did not get a fair deal with the market being managed from Aberaeron.
"There have been complaints about the waiting list for stalls. It is important we have accountability for the market in Cardigan."
The lease will be for three years to enable Menter Aberteifi to carry out a feasibility study into the market.
During that time Menter Aberteifi would be responsible for the day to day management of the market hall, internal repairs and payment of all outgoings.
The county council would retain responsibility for the repair and maintenance of the building structure.