Welsh Health Minister Vaughan Gething said there had been “evidence of non compliance in many licensed premises across the borough,” as well as evidence of the virus spreading between households.
11pm cut off
"We now have evidence of wider community transmission in the borough, which means we need to take urgent action to control and, ultimately, reduce the spread of the virus and protect people's health," Gething added.
"Coronavirus has not gone away. It is still circulating in communities across Wales. Its vital people stick to the rules."
The county has seen 82.1 infections per 100,000 people over the past seven days.
The local restrictions will be in place from 6pm on Thursday 17 September, including an 11pm curfew for pubs and bars.
More than 50 licensed businesses in the county were visited by council officers over the weekend and several premises were closed.
Gething said the measures would be kept “under constant review” with a formal review in two weeks time.
The Minister added that he would not close pubs as doing so may encourage people to gather in private homes and not follow social distancing.
"If there are no opportunities to drink in licenced premises we may see more people breaking the rules and drinking in each other's homes," he said.
Residents in Rhondda Cynon Taf cannot enter or leave the county unless they are travelling for work or education purposes, similar to local restrictions in Caerphilly.
“People will be able to meet outdoors for the time being, people will not be able to meet members of their extended household indoors or form an extended household for the time being,” Gething added.
It comes as UKHospitality has called for more support for pubs involved in local lockdowns, warning of mass job losses.
Pubs in Bolton, Greater Manchester were ordered to shut last week and told they could only operate as takeaways after the town recorded the highest rate of infections in the country.
They cannot serve takeaways between the hours of 10pm-5am.