Two months of free parking is set to begin across the CBD this weekend.
However, time limits and parking restrictions, such as No Standing and Loading zones, will still apply.
The current parking meters will be removed over December and January to allow for the installation of the Smarter Parking meters.
The meters and the Smarter Parking app will be switched on in early February.
Free parking will apply until January 31.
City of Ballarat Mayor Cr Ben Taylor said he hoped making parking free would support people to shop locally this Christmas.
"We want to really activate our CBD and the Smarter Parking Plan is one of the ways we aim to do that," Cr Taylor said.
"But providing free parking over the Christmas and holiday period will also help give an extra boost to the precinct and allow people to shop in the CBD without worrying about the need to feed a parking meter as well. They just have to keep an eye on their time limits.
"We really want people to shop locally this Christmas and support business in Ballarat."
Commerce Ballarat vice chair Hayley Coates said free parking would help its members by encouraging people to shop locally.
"We want the residents of Ballarat to support local businesses and this is a fantastic initiative to help promote that," Ms Coates said.
Ballarat is also now available on the CellOPark app but it is still in 'test mode' to accommodate the free CBD parking over January and February.
To get the app, go to the app store and download one of the links below depending on your device: iOS apps.apple.com/au/app/cellopark-australia/id574820474 or
Android play.google.com/store/apps/details?id=air.com.cellopark.au&hl=en
This is an added option to pay for car parking once Smarter Parking rolls out in early February, with coins and credit cards remaining as well.
However, the app is the cheapest way to pay for parking as you will only pay for exactly the amount of time you use.