Work has begun on the relocation of Liverpool's 'Greatie' market on Great Homer Street to a £2.2m facility in Dryden Street.
Demolition work has started on buildings at 18-22 Dryden Street, creating space for the delivery of an outdoor market with 178 stalls.
The new market is being built by Kier Construction. The scheme will also see the refurbishment of an existing building at 16 Dryden Street to provide space for 78 indoor stalls, a café area, toilets and an office.
Land on Virgil Street to the south of the market will be used to provide 163 car parking spaces and 61 van parking bays.
The plans have received opposition from the market traders who have said that there will be 30% less space than currently available at the Great Homer Street site, and that there will not be enough room indoors for the 78 stalls proposed.
The new Dryden Street market is expected to be operational by late June or early July 2014.
The existing market site is being released for redevelopment as part of Project Jennifer regeneration scheme, which is being led by St Modwen in partnership with Liverpool City Council.
Cllr Malcolm Kennedy, Liverpool City Council's cabinet member for regeneration, said: "This will be a fantastic facility, which will allow us to deliver a better quality market, complementing the wider development at Great Homer Street. There is plenty of room here to provide a market that is as big as the existing one, with parking for customers and traders, all on the same site.
"We have been talking to traders for months, taking on-board their views and where practical, incorporating their ideas for Dryden Street into the plans. And this is an on-going conversation: we will continue to talk and to listen to their views about how we can further improve the scheme."