The City of Cape Town's full council approved a motion on Thursday to rename Keisersgracht to Hanover Street, one of the most well-known streets in District Six before the forced removals.
The request had been made by the District Six Working Committee in June and was supported by Mayor Dan Plato who called for a public participation process to allow Capetonians to share their views.
A total of 1 195 comments were received, of which 96% were in support of the move.
During his address, Plato said he was "looking forward to seeing this council undo one of the many injustices of the apartheid regime and provide the community of District Six, as well as many families and households across the Cape metro with a reason to celebrate and relive the fond memories that they still have of life on Hanover Street".
From 1968, more than 60 000 District Six residents were forcibly removed to the Cape Flats after the apartheid government declared it a whites-only area under the Group Areas Act of 1950.
Hanover Street was the business hub of the cosmopolitan community.