There was huge disappointment last year when St Giles Fair had to be cancelled due to concerns over coronavirus.
The absence was unprecedented and large crowds are expected on September 6 and 7.
Last year the fair was cancelled because it would have been impossible to guarantee social distancing.
Now the fair is going ahead as the government has lifted all restrictions.
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With thousands of people attending it would be impossible to guarantee safe social distancing and the city council in conjunction with the Showmen's Guild announced it would not go ahead.
The London & Home Counties Section of the Showmen’s Guild and Oxford City Council said in a joint statement at the time: "It is with great regret that the London & Home Counties Section of the Showmen’s Guild, in conjunction with Oxford City Council, has to announce that, unfortunately, the St Giles Fair 2020 will not be able to go ahead this year and has subsequently been cancelled.
"With the UK still in the midst of the Covid-19 Pandemic, especially given that the fair attracts large crowds, it is felt that the risk to the public’s health and wellbeing is far too high for the event to go ahead.
"The Showmen’s Guild would like to thank Oxford City Council for their assistance and understanding throughout the planning process.
"We are now looking forward to presenting the St Giles Fair in 2021 in the hope that it will be bigger and even better next year."
The fair is held on the Monday and Tuesday following the first Sunday after St Giles' Day (September 1).
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The fair dates back to 1625 when it was a parish festival to celebrate the feast of the patron saint, St Giles.
In the 18th century it was a toy fair, then in the early 19th century it was a general children’s fair.
The funfair grew during mid and late Victorian times.
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