Traders selling scarves and hats in familiar racing silks [JP McManus, Jean Bishop or Brocade Racing] will be prohibited.
In addition, people handing out promotional material - including flyers, newspapers, stickers, scarves and hats - during the course of the festival week must apply for a permit.
Cheltenham council and the police will also be cracking down on ticket touts operating on public land and the sale of counterfeit tickets.
Alongside police, Council officers will issue on-the-spot fines to anybody who refuses to cease heavy boozing if refusing to stop.
Ian Renton, managing director of Cheltenham, said: "We're very pleased to have a strong relationship with the police and council that has enabled us to work together on the areas around touts, excessive drinking, illegal taxi activity and commercial flyering.
"We recognise the importance of all parties working together to minimise the disruption to local residents during the festival, while at the same time providing a safe and enjoyable week for our 260,000 customers."
Taxi activity will be monitored carefully to ensure the safety of the public and that taxi drivers are not unlawfully plying for trade.
Inspector Roddy Gosden of Gloucestershire Constabulary said: "We'll be running increased patrols in the town, particularly during the night-time economy, to help keep people safe and for the first time we'll have a base at the former tourist information centre in the promenade. Members of the public can come and see us there if they have any problems or concerns."