By-laws to regulate Dublin's Smithfield Horse Fair were passed by Dublin City Council this evening.
The new laws will limit the number of fairs to two a year in March and September.
Horse owners will have to comply with a licensing system to ensure animal welfare standards.
The proposal to require horse owners to take out public liability insurance was dropped.
A new sub-committee comprising horse owners, councillors, DSPCA officers and local interests will look at ways of promoting the fair.
Extra fair days in the summer may be added at a future date.
Colm Kiernan of the Smithfield Horse Owners Association said owners welcomed the new laws.