Children from Bradley School are working on a galleon which will form a centrepiece for the event, and a local club is planning is own Trafalgar-based function.
Coun. Donna Caley, who chairs the celebration committee, hopes other businesses, including cafes, pubs, clubs, shops and stores, will get into the spirit.
The event takes place on Saturday, October 22nd, starting with a host of events and entertainment in the town centre.
There will then be a torchlight procession down to Seedhill Athletics Track, where there will be further entertainment including a huge firework display and music.
The entertainment will include a Sailor's Hornpipe from the Burnley Sea Cadets, and there will be competitions for children, plus professional entertainers.
The Star Cycling Club plans to continue the event into the late evening by holding a Trafalgar celebration at the club in Manchester Road.
Anyone who wants more information about the day's events can contact Coun. Caley via Nelson Town Hall, or call her on 07901 798963 or secretary Saba Iftikhar on 07773 976419.
The event will mark the 200th anniversary of the Battle of Trafalgar, where Lord Nelson, after whom Nelson was named, won the battle, but lost his life.