Fatboy Slim will headline ‘The First Dance’ at The Circus nightclub in Liverpool, on Friday night, which sold out its 6,000 tickets quickly - the first time any such event has been allowed for over a year.
Clubbers will not be required to social distance or wear face coverings but will have to take a lateral flow test before entering the venue.
The UK festival circuit has been hard hit by the coronavirus pandemic with its 2020 season effectively wiped out.
In January, Glastonbury was cancelled for a second successive year after organisers said they had tried to “move heaven and earth” to make it happen.
The Circus will allow entry from 2pm until 6pm on Friday, with the gig lasting until 11pm.
The line-up over the two day event includes Fatboy Slim, Jayda G and DJ Yousef Zahar - also co-owner of Circus Liverpool.
The First Dance is part of the Events Research Programme (ERP), which will provide data on how events holding anywhere between hundreds and tens of thousands of people could safely reopen later this year.
It follows the EFL Cup final at Wembley Stadium last weekend, where 8,000 fans were allowed to watch the match between Manchester City and Tottenham Hotspur and 4,000 were allowed entry to watch the FA Cup semi-finals.
Currently, the roadmap out of lockdown states that nightclubs could reopen on June 21, provided the number of new infections, hospitalisations and deaths continues to fall across England.
Boris Johnson will be told that social distancing measures for large-scale events can be ditched from June 21, after initial results from a pilot scheme discovered no spike in Covid cases among attendees.
An interim report will advise Mr Johnson that mass events can occur safely providing measures, such as staggering entries and good ventilation, are in place.
Government scientists have been observing the impact of allowing crowds back to events after observing fans at the FA Cup semi-final, the Carabao Cup final and World Snooker Championship.