The incident happened shortly after 4am in Horsemarket, Barnard Castle.
A spokesman for Durham police said: "Police responded to a disturbance involving a large number of people.
"Upon the arrival, officers discovered a male who had a serious in injury. This is not life threatening and the victim has been treated and released from hospital.
"A number of people were arrested at the scene and they are currently being held in police custody."
The incident resulted in the closure of a section of the A67 from the bottom of Galgate to the traffic lights opposite the Co-op store, during which time forensic offers were at the scene.
During the road closure, traffic was diverted through the public car park near Morrisons and along Queen Street, Birch Road and Victoria Road.
The A67 was reopened at about lunch time.
Barnard Castle Town Council's 1940s weekend continued, with events planned for the cobbles taking place on Scar Top.
Officers are appealing for any witnesses who were present at the time of the incident to contact Durham Police quoting the incident number DHM25062017-0099.
Officers are appealing for any witnesses who were present at the time of the incident to contact Durham Police quoting the incident number DHM25062017-0099.
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