The new all-season market, starting November 1 would be "a local market with local produce for local people".
Hawke's Bay Farmers' Market chairman Mark Verry wrote to Hastings mayor Lawrence Yule, saying the 14-year-old market, based at the Hawke's Bay Showgrounds on the outskirts of the city, had "struggled in recent years with high costs".
Stallholders were "profoundly concerned that Hastings cannot support two large markets, let alone the night market and the smaller boot sale markets and Black Barn".
"We understand the interest of the CBD retailers to promote the CBD and relate strongly to the problems afflicting retailing generally - we are in that same space," Mr Verry said.
Hastings City Business Association manager Susan McDade said the two markets were complimentary because they drew different customers.
"We are going after the everyday local shopper - families and people looking for a really good deal on fruit and vegetables. If people are coming into town for a portion of their produce they are also going to shop for the rest of their groceries as well."
The Farmers' Market said the Growers Market was council-funded but the association said it was self-funded. Mr Yule said there may be confusion because the council collected a levy, through rates, that was imposed by the association on its members.
Ms McDade said Night Market marquees were bought with a council grant but for the Growers Market stallholders were expected to provide their own.
"There is not one dollar of council money going to the Growers Market," she said.
The Growers Market was modelled on the Whangarei Growers Market.
"It has a huge benefit to that local community."
She said there would be some similarity between the Hastings markets - Farmers' Market stallholders had indicated they would join and still operate at the Farmers' Market the following day - "but there is also going to be a lot of people who don't qualify for the Farmers' Market".
"That will be everyone from people with a feijoa tree in their back garden, to huge trucks."
On October 23 the council will decide whether to allow closure of the road to allow the market.
Mr Yule said council was deciding the matter, instead of a traffic committee, because of the limited time frame.
"The road closure is a legal process that has nothing to do with whether the market is good, bad or indifferent," he said.
There were 16 submissions in favour of the road closure and four against.
Hutchinson's director Hamish Gibbs said while the market would be good for Hastings he did not believe it would be good for his household furnishing store, recently forced to move to the proposed market zone because of seismic work needed on the Hawke's Bay Opera House.
"We have been through road closures before and we know it is not good for business."
Mr Whittaker said the two blocks were chosen because it could be an all-weather venue.
"It will be a mix of fresh fruit and vegetables, to food trucks, to entertainment. It is a whole vibrant, exciting market."