For the second straight year, Fairfield Council has cancelled its Lunar New Year Festival in Cabramatta due to COVID-19 restrictions regarding outdoor gatherings.
Fairfield mayor Frank Carbone said the "uncontrolled, unticketed event" traditionally attracting thousands of people from across Sydney.
"This creates too high a risk for us to hold such a large-scale event with entertainment," he said.
"Unfortunately, on that basis council will not be able to run the event due to the NSW Government's Public Health (COVID-19 Restrictions on Gathering and Movement) Order.
"I know many people will be disappointed by this decision. We know how important this event is for our local community but your safety and wellbeing is more important."
Council still plans to decorate the city to mark the Lunar New Year and will provide some minor attractions to help support local businesses and a range of smaller COVID-19 safe activities.
"While this event won't be taking place, I encourage everyone to still take the opportunity to safely celebrate the occasion with your families in your homes or at a local restaurant," Mr Carbone said.
"Please support local businesses when buying your food and New Year gifts. I look forward to a time when we can all come together again to celebrate together and enjoy everything we love about our city."
Council continues to review all of its events and services in line with the advice and directives of the NSW and federal governments and NSW Health.