NSW councils can get $10,000 to run COVID-safe events over the summer to draw people outdoors and support local business.
NSW Minister for Planning and Public Spaces Rob Stokes said the government funding could be used to host outdoor markets, micro-festivals, open-air theatre, street parties, lawn libraries and street entertainment.
Such events would help people connect after a difficult year marked by the coronavirus pandemic and help stimulate the economy.
"Local businesses need our support to recover from the devastating effects of COVID-19 and this funding helps them create environments and experiences that encourage people to stay and spend local," Treasurer Dominic Perrottet said on Wednesday.
The funding comes on top of a further relaxation of rules for alfresco dining and local events.
The NSW government's Festival of Place Summer Fun(d) program will run from December until Easter.
Australian Associated Press