The reinstatement of this parking follows the completion of a 10-week project to remove the ramps and elevated car park at Allen Place and the bridges over Station Street.
"The Allen Place project has been delivered on time and on budget, lessening the impact on Penrith residents," said Penrith Mayor Cr John Thain.
"The delivery of 90 parking spaces, including 23 new spaces is a great result.
"The removal of the ramps, elevated car park and bridges has created a safer environment for our local businesses who operate near Allen Place and for residents who use this car park," said Cr Thain.
The ramps were closed in March 2015 due to safety concerns, with recent deterioration making them unsalvageable.