Enterprise Dunedin director John Christie believed the initiative - helped by the Dunedin Street Art Trust- will further reinforce Dunedin's reputation as a creative and innovative city when it comes to major events.
Although a relatively small city in global terms, Dunedin was "incredibly fortunate'' to have world-class facilities such as the Forsyth Barr Stadium for hosting major events, Christie said.
Projects such as the Ed Sheeran street art and a significant city dressing and events programme demonstrated Dunedin's "unique and immersive approach'' to reinforcing the city's image as a creative and innovative city over major events.
"On this occasion, we will literally Paint the Town Ed,'' he said.
The Bath St art work would also encourage concert goers to promote Dunedin to friends and family via shared imagery online.
The lower Octagon will be closed to traffic from Wednesday March 28 for six days, creating a central pedestrianised hub for all things Ed.
The partially-closed Octagon would be temporarily transformed from its usual state into a vibrant, family-friendly space, filled with street furniture, plants, and accent lighting.
During the concert weekend an "Easter Ed Hunt" competition will also be run via DunedinNZ's Instagram account, and participants have been asked to take snaps in front of a series of central city locations to be in to win, he said.
Ed Sheeran will perform in the city at three concerts, on March 29, March 31, and April 1.