People must show an NHS Covid Pass or demonstrate their vaccination status to enter nightclubs and attend large events in Wales from Monday.
It means all over-18s will need one to enter nightclubs, indoor non-seated events for more than 500 people, such as concerts or conventions, outdoor non-seated events for more than 4,000 people and any setting or event with more than 10,000 people in attendance.
Wales' rugby game against New Zealand on 30 October will be one of the first mass events to require Covid passes.
People will also be able to show they have had a negative lateral flow test result within the last 48 hours.
Anyone who is over 16 and has been fully vaccinated in Wales or England, or has had a negative lateral flow test result within the past 48 hours, can get a pass.
First Minister Mark Drakeford said: "The last thing we want is further lockdowns and for businesses to have to close their doors once again.
"That's why we must take small but meaningful action now to control the spread of the virus and reduce the need for tougher measures later."
Asked if people could falsify their lateral flow tests, Mr Drakeford said: "It is vulnerable to people who want to abuse the system but that's why the law is there."
Those who fake a coronavirus test result or vaccination status will be committing a criminal offence and face a fixed penalty notice.
The legislation was passed in the Senedd last week despite opposition from the Welsh Conservatives, Plaid Cymru and the Liberal Democrats.
Wales is facing some of the highest infection rates since the beginning of the pandemic, particularly among young people.
Economy minister Vaughan Gething said: “Our fantastic vaccination programme continues to go from strength to strength but the pandemic is not over.
“Cases remain high across Wales and, unfortunately, families across the country are losing loved ones to this awful virus.
“The clear advice from our scientific advisers is that we need to take early action now.
“The Covid Pass is just one of a series of measures in place to help prevent people spreading and catching coronavirus while helping to keep the economy open.
“None of us want to see further lockdowns and for businesses to have to close their doors once again.
“Showing a Covid Pass is already part of our collective effort to keep businesses open, with some major events, such as the successful Green Man Festival, using it.
“Together, if we all continue to follow the clear guidelines we’re all used to by now, we’ll be doing everything we can to keep Wales safe.”
Only people attending these venues and events will need to show their Covid status.
Staff working or volunteering in these venues are encouraged to take lateral flow tests twice a week to check they do not have the virus.
Workplaces are required by law to undertake Covid risk assessments, and to put reasonable measures in place to ensure staff safety.
The Welsh Government will use the current enforcement regimes for monitoring compliance.
A premises could be issued with an improvement notice or closure notice, while a fixed penalty notice and a maximum fine for businesses of £10,000 can be issued.
Conservative health spokesman Russell George accused the Welsh Government of a U-turn having previously ruled out introducing them.
“I just do not think that we should become a checkpoint society by introducing a vaccine passport,” Mr George said in the Senedd last week.
Plaid health spokesman Rhun ap Iorwerth said his party was not against the principle of Covid passes but took issue with the proposals in their current form, including the use of lateral flow tests.
“We’ve asked many questions and haven’t been given assurances that we have sought, and it is for that reason that we feel unable to support these regulations,” he said.
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