Wales' First Minister confirmed that groups of up to 30 people from different households will be able to meet outside from Monday, as long as they socially distance.
In Mark Drakeford's sixth review into rules designed to contain coronavirus, he also said that children under the age of 11 do not need to socially distance at all anymore.
This is because of new data, which shows the risk of transmission within this group is lower than first thought.
Mr Drakeford outlined planned changes to lockdown rules for the next three weeks in a press briefing on Friday 31.
Pubs and restaurants will be allowed to open indoors from Monday. They have been able to open outdoors since the 13th July. Mark Drakeford said that while rates of coronavirus in Wales remain low, restrictions will be relaxed further and more businesses can reopen.
In light of local restrictions that have been brought in in parts of north England, Mr Drakeford said they are monitoring the situation in Wrexham.
There has been a recent surge of coronavirus cases in Wrexham and specifically at Wrexham Maelor Hospital.
Mr Drakeford said: "The evidence, I think, is that things are stable...We will continue to monitor carefully, to watch that situation.
"If that situation changes then of course we will take action in response to it.
"The positivity rate at Wrexham would put it in the middle of the table right across England, not at the top end of the English table."
The First Minister added that local lockdowns would be considered in areas of Wales where there were spikes in coronavirus. This is unlikely to mean one "blanket regime" for north Wales and another for south but things like travel restrictions would be "targeted" to specific local areas.
The First Minister said they "continue to explore" how to allow more people to meet indoors, but said this is "one of the most difficult areas from a public health perspective".
Gyms, swimming pools and leisure centres have also been given the green light to reopen on Monday, 10 August "if conditions remain favourable". The Welsh Government had previously said they were "very keen" to allow fitness facilities to fully reopen because for many the gym "is a really important part of their lives".
Watch the full Welsh Government press conference from Friday 31 here: