Waterford city centre has experienced something of a renaissance in recent years. The award-winning pedestrianisation of John Roberts Square, named after the esteemed 18th century architect, has boosted footfall in the main shopping streets it interlinks - Barronstrand Street, Broad Street and Georges Street.

Shoppers no longer have to battle their way across two-way traffic and parked cars to access these streets, which encompass a relatively compact area. The fact that locals are traditionally not inclined to wander off the main drag has meant that secondary streets have a limited passing trade. There is a serious shortage of prime retail space, which is reflected in recent prices achieved at auction.

In March, the 692 sq ft Mary Coppingers hairdressers, 24 John Roberts Square, was bought by the adjacent Book Centre owner Sean Ryan for a figure in the region of £550,000 (€698,350) at auction. The 964 sq ft former Norwich Union premises, on 23 Georges Street, was bought in trust for more than £200,000 (€253,950) over the guide price of £605,000 (€768,190) in April. Local agent O'Shea O'Toole & Partners was involved in both sales.

Newry developer Gerard O'Hare bought the 19,000 sq ft Eircom site on High Street for a figure in the region of £2.2 million (€2.8m) last December, and it is believed he plans a mixed retail and commercial development.

Situated in an archaeologically sensitive area, the former Eircom building is near the City Square Shopping Centre. This stands on the site of one of the biggest excavations carried out in the country, between 1986 and 1992, and has the remains of a 12th century church in its basement. Some of the finds made there - including a gold brooch, 12th-century dog collar and cloak pins - are on display in the Waterford Treasures Museum.

Waterford is arguably the oldest continuously settled site in Ireland and recent archaeological excavations have revealed evidence of 10th-century settlements. Much of the early remains show a strong Viking influence. It is believed Waterford Corporation will recommend a policy of preservation rather than excavation in its forthcoming draft development plan.

The retail boom has seen an invasion of British multiples such as Boots and Mothercare, but according to the president of the Chamber of Commerce, Monica Leech, the prevalance of local retailers makes for a more interesting mix. "There would be a sameness if it was all UK stores. We have a good variety of boutiques, antique shops and restaurants."

Because cruise passengers spend four times more than the average tourist, the increased number of liners docking at Waterford in recent years has been a boon to local retailers.

One of the city's biggest retail successes has been the 42-unit City Square Shopping Centre, off High Street. Owned by Bank of Ireland Asset Management, it has a healthy footfall of visitors and throughput of 10,500 cars per week in the 450 space car-park. The anchor tenant is Dunnes Stores and rents are in the region of £60 to £70 (€76 to €89) per sq ft.

Roches Stores closed its food element, which was part of the Musgrave's Super Valu chain, and River Island is believed to be interested in locating there. Eat-Me has bought the leasehold interest of the former La Croissanterie unit for £50,000 (€63,490), and is paying a rent of £26,000 (€33,010) per annum.

Previously an amalgam of small retail units, the Broad Street shopping centre owned by Cecil Rothwell is the subject of a proposed refurbishment into two 6,000 sq ft retail units. The 28,000 sq ft Georges Court, built in 1979 and owned by Kathleen Fitzgerald, has undergone major refurbishment. Prime city centre rents vary from £40 to £70 (€51 to €89) per sq ft, with shopping centre rents of £60 to £70 (€76 to €89) per sq ft.

Preserving the heart of the city is a priority with Waterford Corporation, even if it means depriving the local people of what they want - more retail warehousing outside town.

Largely based on the Tramore Road, Cork Road and the inner ring road, the easy accessibility of these large outlets has made them popular. Currys moved into the 12,000 sq ft former Waterford Bowl premises on the inner ring road in March and spent £750,000 (€952,300) on the subsequent fit-out. The warehouse outlets have also been blessed by the opening of the Superquinn Kilbarry Shopping Centre on the inner ring road last November.

"We are wary of retail warehousing, if you pardon the pun," says city manager Eddie Breen. "We are very anxious that the traditional shopping area of the city centre be protected and we are very conscious of anything that will detract from that. We try to manage carefully and not to proliferate." He says the pedestrianisation of the shopping heart has eased the traffic congestion problem. "We are pretty well serviced for parking in the city centre - and at all costs can't see the city centre denuded of its attractions."

While much of the city centre still wrestles with traffic gridlock, a traffic study commissioned by Waterford Corporation and being conducted by Atkins McCarthy consultants is expected to recommend ways of alleviating congestion over a 20-year period.

One of Waterford's best kept secrets is its burgeoning arts and culture sector. Two years ago, the £5 million Waterford Treasures museum was opened at the Granary, on the South Quay.

Next month the Municipal art gallery will open in a former church in Greyfriars, owned by Waterford Corporation and converted at a cost of £200,000 (€253,950). It will provide the first ever permanent home for the city's art collection. The proposed £4 million (€5.08m) extension to the Municipal library on Lady Lane should be up and running by 2004, and a £1.6 million (€2.03m) refurbishment of the Theatre Royal has just been completed.

The 21-acre Waterford Business Park developed by David Flynn Ltd - adjacent to the IDA industrial estate and fronting on to the Cork Road - comprises 135,000 sq ft of factory and warehouse space, 40,000 sq ft of new office space and 40 warehouse incubator units of 2,000 sq ft upwards. Rents are pitched in the region of £12 (€15) per sq ft for office space and £6 (€7.50) per sq ft for warehouse units. Current tenants include NTL and Waterford Enterprise Board.

Infrastructure has been put in place at the 70-acre IDA technology park on the Cork Road, where it has planning permission for a 200,000 sq ft office development. The IDA is in the process of appointing a developer and hopes to have the first building constructed within a month and the first 60,000 sq ft tranche completed by the end of the year.

The IDA also has 150 acres of land available to industry adjacent to its Cork Road industrial estate, and is currently seeking a new tenant for the 125,000 sq ft Luxotica building on 15 acres - which is expected to fetch £5 million to £6 million (€6.35m to €7.6m). The authority also has an 180-acre land bank at Belview suitable for large-scale process industry.