The event attracts thousands of visitors, travellers and horse dealers every June and is one of the most important events on the travellers' calendar.

Now Appleby town councillors have agreed the setting up of a company to run the event.

Reports by the police and Eden District Council had said that major changes were needed before the event could go ahead.

Councillor Keith Morgan said: "Having established the principle of having a company to manage the fair is big progress.

"Now I hope we can make similar progress with regard to addressing the safety and traffic management issues."

Following the 2002 horse fair, Eden District Council received a number of complaints, particularly in relation to travellers camping on verges and causing disruption in villages around Appleby.