The Dismaland show – which will also feature work from Damien Hirst, Jenny Holzer and Jimmy Cauty – will take over the Tropicana for six weeks.
“I loved the Tropicana as a kid, so getting to throw these doors open again is a real honour,” Banksy said.
The show is his first in the UK since 2009’s Banksy v Bristol Museum show which drew huge crowds.
Speculation had been growing that the elusive Bristolian had been planning an exhibition after a castle and sculpture made from tanker trucks appeared and could be seen above the walls.
Nigel Ashton, leader of North Somerset Council, said: “We have been working closely with the organisers for months now, and for obvious reasons, have had to remain tight-lipped about the true nature of the event.
Several locals have already walked past and asked when tickets are available.
One even let out a loud belly laugh as he saw the Dismaland sign at the entrance.
The interest in the exhibition is already high with a line of TV trucks parked on Weston’s seafront.
If his last show in Bristol in 2009 is anything to go by, those trucks will soon be replaced by long queues of visitors keen to see Banksy’s latest work.
“In fact, only four people in the entire council knew what was really happening.”
The Tropicana outdoor pool and leisure facility closed in 2000 due to falling visitor numbers.
Since then, there has been various attempts to either reopen or demolish the structure.
Banksy has an international fan-base and his works sell for hundreds of thousands of pounds at auction.