Moffat Gala Committee and Moffat Promotions Group are behind the move.
They currently have a 40ft x 6ft metal container on private land at the Green Frog in which they store a portable events stage and other equipment needed for their various events through the year.
However, it now requires to be moved so they approached Dumfries and Galloway Council.
And councillors last week agreed in principle to the relocation, subject to planning permission.
It was also decided to waive the annual ground rent fee of £265, after it was pointed out that Upper Annandale Football Club do not pay rent for their container which has been sited in the car park since the early 1990s.
Elected members were warned that agreeing to the new container will result in the loss of five car park spaces out of 35, which could impact on events held in the park.
The decision will now go to the finance committee to be ratified.