The chair of Castletown commissioners says the local authority will drop a plan to close the town's square to traffic all year round instead of just summer.
In his monthly report to the board, Tony Brown says instead the commissioners will ask the Department of Infrastructure for powers to close the area as needed outside the summer months.
The issue of when the square should be open to traffic was one which helped shape the last elections in the ancient capital.
Mr Brown says a new policy will be put in place in time for next year after talks with businesses and residents.
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