Shrewsbury BID has teamed up with Shropshire Council and Shrewsbury Town Council to install the giant floor covering to mark the 50th anniversary of the Pride movement.
The national campaign celebrates the LBGTQ+ community, promoting equality and diversity across all walks of life.
Jonathan Soden, of The Soden Collection in Wyle Cop and member of the Shrewsbury BID board, said the rainbow would make a strong statement.
“We were keen to celebrate Pride Month in the right way, and the idea of a bright, bold piece of artwork right in the heart of the town was perfect,” he said.
Cecilia Motley, Shropshire Council's cabinet member for communities and culture, said: “I’m very pleased to support this initiative by Shrewsbury BID on Pride Hill, which I am sure will very much complement the ongoing Pride on Pride Hill initiative by the Nationwide Building Society.
“I absolutely commend such efforts to raise the visibility of the LGBTQ+ community in Shropshire and show support to the diversity of individuals who may describe themselves as being part of this community.
“We have already raised a rainbow flag at Shirehall to mark our commitment to equality and inclusion in a tolerant and open community for all.”
Alan Mosley, leader of Shrewsbury Town Council, said: “Shrewsbury Town Council warmly recognises the diversity and inclusion within our community and it is fitting to mark the 50th anniversary of the Pride movement in this way.”
Catherine Armstrong, vice principal – curriculum support and business development, at Shrewsbury Colleges Group, said: “We applaud this initiative by Shrewsbury BID and the local councils to demonstrate support for the LGBTQ+ community and help celebrate Pride Month.”