PEDAL power will be used to help Darlington Borough Council deliver some of its internal mail.
The council has signed up to a pilot scheme called Green-Link, run by the York-based Company of Cyclists.
The town is one of just four in the country to join the initiative.
From May 31, a bike, which can carry up to 200 kilos of post, will be used to collect, sort and deliver some of the internal mail for three council departments - development and environment, printing and design, and housing.
The scheme is being funded by the authority's Town On The Move project, which is trying to encourage more sustainable travel in the town.
Nick Wallis, the council's cabinet member for transport, said: "We are committed to using and promoting alternative forms of transport.
"Green-Link is an exciting development for the local authority and we hope it encourages other businesses to think about how they transport their mail."
It is hoped other council departments will join the scheme and eventually it could be expanded further as a commercial venture to other organisations, such as the NHS.
One cyclist will be used in Darlington in the initial stages, but this could be increased if more council departments come on board.
Chris Hamm, head of development at Company of Cyclists, said: "Darlington is ideal for Green-Link, especially with the work to create a 'pedestrian heart'. It can be difficult for delivery vans to negotiate some areas, but on a bike it is a lot easier.
"Local authorities spend money and many valuable man-hours moving internal mail between their various sites. Green-Link is an environmentally-friendly and sustainable alternative."
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