Mansfield City Council on Tuesday unanimously approved the honorary recognition.
"'Prince' Charles Williams did a great service to the Mansfield area," Mayor Tim Theaker said. "He represented Mansfield in his boxing endeavors and it's only fair and nice that we are able to turn around and rename a portion of a street after him."
Theaker said Williams, who retired from boxing in 1996 with a record of 37-7-3 with 28 knockouts, grew up on Harker Street.
Williams, 58, spent 5½ years as light heavyweight champion after beating Bobby Czyz on Oct. 29, 1987 in Las Vegas.
At one point in his career, he enjoyed a 21-fight winning streak, but he lost the belt to Henry Maske in a 12-round decision on March 20, 1993.