Chairman of West Lindsey District Council, Cllr Jessie Milne, welcomed guests including High Sheriff of Lincolnshire and sister of the late Princess Diana, Lady Sarah McCorquodale and Lord Lieutenant of Lincolnshire, Tony Worth.
Also on the VIP list was Chairman of the County Council, Roy Chapman, Vice Chairman Peter Bedford, Mayor of Lincoln David Gratrick, Sheriff of Lincoln Lance Pennell and Portfolio Holder for Economic Development at South Kesteven District Council, Frances Cartwright.
Cllr Milne said:
"There is tremendous interest in how Gainsborough has been transformed by the creation of the Riverside Walk and Marshall's Yard and the work that still has to be done to refurbish the Market Place and town centre.
"We took all of our visitors on a walking tour accompanied by Regeneration Services Manager Suzanne Fysh who was able to explain in detail how such a massive improvement had been achieved.
"All of our visitors were very impressed with what they saw and went away with a very positive view of the town."
Cllr Roy Chapman, Chairman of Lincolnshire County Council, said:
"The developments in Marshall's Yard are most impressive, and the range of shops and facilities is quite amazing. The use of the old machinery, such as the gantry at the entrance, shows real imagination.
"The transformation of Whittons Mill was quite staggering - what had been patently industrial is now residential and attractive. The Art Gallery and Restaurant were particularly pleasant and appealing also, and it was wonderful to see such a wide variety of shops in the Market Place.
"The town has shown quite dramatically what can be done, and there was a distinct atmosphere that this is something of a beginning with lots more to follow."