Dydd Llun Pawb (Everybody's Monday) is an almost forgotten tradition in the town, but will be celebrated in April 2018.
It took place in the late 1800s when following the spring market, everyone was given the Monday off to descend on the town.
Streets would be filled with entertainment, food stalls, musical acts and side shows.
Artists Marc Rees and Lisa Heledd Jones are working with Oriel Wrecsam to recreate the event.
It will capture the spirit of the original bank holiday, and will include a parade, fairground rides and street food.
It will also see the launch of six new souvenirs based on Wrexham's most colourful stories, which will be gathered from the public at events over the coming months.
Mr Rees said a celebratory event such as Dydd Llun Pawb could "galvanise the community".
He believes it will "help reinstate and reaffirm Wrexham's identity which, as we've discovered, is something that locals strongly feel has been lost".
Dydd Llun Pawb will take place on 2 April 2018.
A call has been made to reclaim a bank holiday unique to Wrexham.