Thousands of actors and participants are taking part in the Green Fields Beyond event.
It also focuses on the role of the women, dubbed "Munitionettes", who worked on the production lines
The tank was designed by William Tritton and Walter Wilson while working for Lincoln agricultural engineering firm Fosters.
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A small number of Mark 1 tanks from Lincoln were used for the first time on 15 September 1916 during the Battle of the Somme.
The name of the event is taken from the unofficial tank regiment motto "Through Mud and Blood to the Green Fields Beyond".
Celebrations began on Friday night with a preview of tonight's performance at Lincoln Castle attended by 1,500 people.
Elsewhere, crowds were being entertained with music, storytelling, poetry and historical talks.
Celebrations to mark the 100th anniversary of Lincoln's first World War One tanks are taking place.