Mayor of Falmouth Councillor Colin Gager says no vending will be allowed in the popular Water Square over the holiday season.
Instead, Mayor Gager says vendors will be moved to a new designated vending area to ply their wares.
He says the municipal corporation wants to reserve the square for pedestrian traffic.
He says this will help to ease congestion.
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The Falmouth mayor says the designated vending areas will have adequate space and security.
Meanwhile, there were mixed reactions from some vendors to the new rules with some complaining that it may affect sales while others said they support the decision.