Empty shops on the outskirts of Spalding could be converted into homes as ministers accept change must happen.
Planning minister Nick Boles, whose office is in Bourne, has suggested councils should concentrate on retail outlets in prime locations and allow other areas to become residential.
Mr Boles said: “People’s shopping habits are changing very fast as a result of the rise in internet shopping and changes in lifestyles.
“We need to think creatively about how to help town centres thrive in this new area.
“We want to encourage local councils to concentrate retail activity into the prime shopping streets in the heart of their town centres and adopt a more relaxed approach to under-used retail frontages.”
Some £1.2million of taxpayers money was shared out between 12 towns, including Market Rasen in Lincolnshire, to inject new life into their traditional shopping High Streets.
Market Rasen Business Improvement Group (MR BIG) representatives have visited Spalding Chamber of Trade and Commerce to discuss how making changes has helped their town centre.
Chamber president Phil Scarlett said: “There’s no doubt there needs to be a reconfigeration of town centres.
“The move is towards them becoming more social spaces. Town centres will evolve – they always have.
“At the moment Spalding is fortunate to have few empty shops,”
Coun Roger Gambba-Jones said: “My concern with changing shops into homes would be waste collection. There could be a problem accessing back alleys and we don’t want to see rubbish bags going out into the streets as soon as they were full.”