Mrs Broughton said the market's stallholders and committee members had held a vote to decide if the market should restrict its hours and size in order to reduce its impact on the neighbouring business, but this, with some alternative locations, had been rejected in favour of a move into Memorial Square.
"We don't want to have any problems with our next door neighbour - the whole thing about the market is that it's a community venture. We see going into the square as a way to alleviate the problem.
"It's a better location and it's kind of where we wanted to be from the start so it seems like it would work for everyone involved."
The group has submitted a proposal to council outlining ways it could mitigate any possible damage to the square by using matting and weights rather than stakes.
While the closure was disappointing, especially for stallholders who had made products in advance, Mrs Broughton said she was hopeful the council would approve the proposal.
"We are hoping that will be that."
The owner of the Buckhorn Bar and Grill, John Kennedy, said he was not prepared to comment while the matter was still before the council.
Mayor John Booth said it was great to see the market receive so much support and he hoped a resolution could be reached soon.
"The passion that people are showing to have the market - it's been a real eye-opener in terms of people really wanting their market."
In light of the market's request to move into the square, council staff had been asked to investigate the possible risks, Mr Booth said.
"Because it is a special area and we'd like to do this right, we asked our parks and reserves manager and his crew to look at the park and what potential risks of damage and how we could mitigate it if the market was there."
Mr Booth said he had spoken to Rex Kenny from the Carterton RSA about the market moving into the square, and Mr Kenny had said "the old soldiers would have loved it if they could hear the laughter and happiness going on".
The group's proposal was received by council on Tuesday and a decision about whether the market could be based in the square is due to be made at the next council meeting on Wednesday.
A community picnic in support of the market is being held at the square this Sunday from 10am to 12pm.