The pilot zone will be an opportunity for a borough to trial a range of approaches for the high street, such as running night-time markets, testing longer opening hours, or helping shops and hotels host cultural events. The results of the pilot will be used to shape future plans across the capital.
The announcement comes after research revealed that 92% of councils in England believe that the night-time economy can be key in preventing the decline of high street retail.
The Safer Sounds partnership has also been announced, which is designed to make it easier for organisers to put on live music events and safer for music fans by promoting high standards and offering support and training.
The partnership will work in collaboration with venues, event organiser and local councils and police.
It will support venues and help to bring consistent licensing practice across the capital, addressing concerns about unfair treatment of artists.
Khan, said: “As Mayor, I want London to be a city that works for all Londoners, at all times of the day and night. That’s why City Hall have asked the Night Time Commission to help realise our vision for a 24-hour city, and why I’m pleased to respond to their recommendations with such positive action.
“Our new Night Time Enterprise Zone will help to boost high streets by delivering innovative ideas that will draw Londoners to their town centres after 6pm, while the Safer Sounds Partnership will provide support for and drive up standards across the music industry. The bold initiatives we’re taking forward will help ensure the capital works for everyone at night.”