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The Peacocks will name the stand next to the clubhouse the Tony Payne Stand in tribute to the former player and manager, who dedicated more than 20 years of his life to the club.
A special naming ceremony will take place on November 21 at 1.30pm, ahead of the match against Chertsey Town FC.
Tony Payne said: "The club has been my life, making lifelong friendships with team mates, fans and even opposition.
"I am so proud to have represented my home team for so long and am humbled and so appreciative of this great honour."
Mr Payne first joined Taunton Town in 1965 as a 17-year-old, having been spotted playing for the local YMCA youth team.
He went on to play around 1,000 games for the club, including more than 800 for the first team, and scored over 250 goals.
His first-team career spanned 21 years until 1986, though he continued playing for the reserves into the 1990s.
His final appearance came in April 1994.
Mr Payne played a key role in the Western League-winning team of 1968-69 and captained the side in their historic FA Cup first-round match against Swindon, which ended in a narrow 2-1 defeat.
He also represented the Western League and an FA XI in various representative fixtures.
Despite opportunities to play at higher levels, he remained loyal to his hometown club.
Mr Payne served as player-manager during the 1983-84 season and later helped run the reserve team throughout the late 1980s and 1990s.
This included supporting his son Andy’s progression to the first team.
His daughter Juliet also caught the football bug, playing for various teams and now taking part in walking football.
Mr Payne is now a life member of the club and continues to support Taunton Town from behind the goal, alongside other long-serving former players.
A spokesperson for Taunton Town said the November 21 game was originally planned as Former Players Day but will now be dedicated to the stand-naming ceremony.