South William Street in Dublin is preparing to welcome a combination of pubs and restaurants to its narrow quarters. Traditionally the home of the city's rag trade, the richly historic street is now coming alive with eateries, coffee shops, upmarket restaurants and sex shops, drawing comparisons with the kind of thoroughfares found in Temple Bar.

The pedestrianisation of Coppinger Row, running one side of Powerscourt Centre, coupled with plans to widen paving in South William Street is expected to boost hopes of a retail revival.

'Rents have doubled for alternative users coming in to the street. I would see it becoming an area of pubs and restaurants. The problem is that there are not many big buildings left, but you will get infills,' said Ben Pearson of Douglas Newman Good.

'They will try and turn it into a smaller Soho. Even at night already it is quite busy, whereas there was no night-time business there before.'

Paul Keaveney, the owner of McDaid's pub in nearby Harry Street, is turning a derelict building at 9 South William Street into a pub, which will have more than 5,000 sq ft. This project, which is well under way, is likely to have the most immediate impact on the night-time scene.

A two-storey pub is also being planned close to Conrad Gallagher's Peacock Alley restaurant, on the opposite side of the street. Grogan's/The Castle Inn, one of the street's best-known landmarks, continues to draw a big following at the junction of Castle Market, opposite Cooke's restaurant.

Restaurants are springing up rapidly. The Kyber Tandoori is the latest addition, providing competition with the existing Eastern Tandoori and Jewel in the Crown Indian restaurants. The Rhino Room can be found up a flight of stairs near Castle Market, while Muscat opened its doors last May, serving Irish/mediterranean cuisine.

Those looking for a coffee-break from shopping have lots of choice in South William Street, with Caffemoka, the Metro Cafe and Munchies among those currently pitching for business.

Meanwhile, Coppinger Row is to be pedestrianised as part of Dublin Corporation's plan to have a cobbled walkway between Dublin Castle and Grafton Street. Pavements along South William Street may be widened in a bid to lure retailers and shoppers.

Retailers who have already moved in say the street is enjoying a night-time buzz.

'I am absolutely sure it is going to be one of the streets in Dublin, outside of Temple Bar, which rolls off everyone's tongues when they come off the ferry or whatever,' said Brian Cornish of Muscat.

'We had two girls from Brighton in the restaurant, who were on their first trip to Dublin, and they had heard about us from a friend. People are coming over for weekends and it is not just for Temple Bar, it is here as well.'

A recent editorial in Gay Community News musing about the area becoming 'the pink street' stirred up much speculation about its future influences. A gay and lesbian community centre and the gay newspaper are housed on the upper floors of one building, but Deborah Ballard, the paper's editor, played down the publicity.

'I think it is going to change from a run down rag trade street to quite a prosperous street of pubs, cafes and restaurants. Rents will shoot up and I doubt whether other community groups like us will be able to stay,' she said.

'In this prosperous time it is going to be regenerated quickly in an upmarket sort of way and it was never the kind of area which would naturally become a 'pink' street.'

Ray Sood of Scruffi Clothing Co, said two or three clothing wholesalers who had been in the street for years had moved out. The strength of Dunnes Stores, Debenhams and other major retailers was making it difficult for wholesalers reliant on selling to smaller shops, he said.

But he believed wholesalers would remain part of South William Street for years to come.

'As long as five or six wholesalers are here, I don't see any huge problems,' he said.