Sheeran will play in the town on March 29 and 31, and April 1, meaning the shows clash with Easter holidays.
Dunedin City Council liquor licensing co-ordinator Kevin Mechen said today an agreement was reached with reporting agencies which initially opposed the special licences, and so far about 15 were granted.
Another 10 applications were expected to be granted, he said.
It was a ``common sense'' move, as otherwise the city could not cater for the 110,000 fans attending the shows, he said.
``If the town was shut, Dunedin's reputation and probably New Zealand's wouldn't be that flash.''
It was especially important as roughly 70% of tickets were sold to people outside of the region, he said.
The special licences required bars to have some kind of ``event'', he said.
``Each venue has to do it's own thing. Most will have some kind of Ed Sheeran theme in the bar. A couple of places are putting fan zones outside.''
On Good Friday and Easter Sunday mornings the bars would have 2.30am closing times under the special licences.
Mr Mechen doubted the move would create a precedent as the situation was a ``perfect storm'' of an internationally renowned artist playing at Easter weekend.
