The old Z Energy building on Water St is to be demolished before June to allow for the expansion of the popular Whangarei Growers' Market.
The 20/20 inner city revitalisation committee of Whangarei District Council voted to demolish the building at Wednesday's meeting but is yet to decide on future development of the overall site.
The toilet block is to be retained for use by stallholders.
The market's organisers were also keen to see containers being used, such as those in Christchurch, an idea supported by Councillor Greg Innes.
"I went to Christchurch to see the shipping containers. They are a vibrant part of the city centre, they could add value here," he said.