The seven-a-side carnival has drawn 32 teams in boys and girls divisions, with Aboriginal and non-Aboriginal players involved all in the name of reconciliation.

In the boys' draw the Taree-based Biripi side is undefeated as is Darkinjung, from the Central Coast.

Girls teams Anawain and Dharawal Whales will also carry unbeaten records into the second day of competition.

"The football has been a really high standard across the day and we're expecting the same thing tomorrow," PCYC's Paula Skinner, who is one of the organisers of the event, said.

"The good thing about a carnival like this is that we make sure we are engaging Aboriginal communities across the state and teaching them about their cultural identities while at the same time we're teaching the non-Indigenous kids that they are playing on Wiradjuri land.

"Rugby league is a game that engages kids, both Indigenous and non-Indigenous, and we tell the players that they must have at least a 78 per cent attendance rate at school so they have to be doing the right thing with their education in order to play."

The Nations of Origin event is only in its second year, and the numbers have grown from 35 teams in 2013 to 64 this year, and while that number has the potential to keep growing Skinner said organisers will monitor things after the carnival concludes.

"We had between 4000 and 4500 people at the ground today and each team has 12 players so it has gotten pretty big very quickly but we think that's a good sign," she said.

"We'll sit down when the dust settles on this carnival and see if there's room for it to grow but we're really pleased with the growth we have seen in just the first two years.

"We've got teams from all parts of NSW playing here, and Dubbo is a great venue for it with the facilities and the central location, but we'll get this year's competition over first before we worry about next year."