Ismailia Governor Gamal Imbabi has reduced the night-time curfew imposed on the canal city from nine to three hours.
He announced the decision at a Wednesday press conference.
President Mohamed Morsi on Sunday declared a month-long state of emergency in all three canal cities (Suez, Port Said and Ismailia), which entailed daily 9pm-to-6am curfews.
He later empowered the governors of the three cities to reduce or cancel the curfew in their respective cities in accordance with local security circumstances.
Ismailia and Suez have both witnessed anti-government protests and clashes since the second anniversary of Egypt's January 25 Revolution on Friday. In Suez, nine people – including one police conscript – were killed, while at least one civilian has been reported killed in Ismailia.
Port Said, meanwhile, has seen intermittent violence since Saturday, after a criminal court sentenced 21 of its residents to death for their involvement in last February's Port Said stadium disaster in which scores of football fans were killed.
Riots that erupted in the city after the verdict was announced left at least 39 civilians and two police officers dead.