The town Mayor Shaida Hussain and the chair of Cherwell District Council Hannah Banfield will officially open the fair at 4pm on Wednesday October 13.
After the official opening, Cllr Hussain and Cllr Banfield will tour the fair with a large golden key and every amusement ride they touch with the key will give a free ride.
Due to Covid-19 restrictions, and public health concerns the Banbury fun fair was cancelled last year for the first time in recent history.
Cherwell District Council runs the popular annual event in partnership with Bob Wilson Funfairs, and it often attracts big crowds to the town centre.
The three-day event returns to the Horse Fair area of the town centre from Wednesday October 13 to Friday October 15. The fair will be open from 4 to 11pm on Wednesday and 1 to 11pm on Thursday and Friday.
Admission to the fair is free, and rides can be paid for on the day with cash or credit card.
Emily Wilson, director of the Bob Wilson Fun Fairs, said: "We've got over 30 big rides, and new rides never been to Banbury. We've got a fun house called Monkey World that's four stories high too.
There will also be all kinds of fair food available from candy floss to burgers, sausages and chips among others.
Organisers will be taking all the safety precautions during the ongoing Covid-19 pandemic.
She added: "We'll have hand sanitiser throughout the site to help people feel safe."
Mrs Wilson added: "We're very pleased to be back, and want to thank Cherwell District Council for helping us. We're looking forward to returning to Banbury."