Residents of the city are being encouraged to join or watch the march that from 10am will make its way from the corner of Bultje and Bligh streets and along Macquarie Street to Ollie Robbins Oval for a "fun day" running until 2pm.

Government and non-government service providers will set up at the oval in a show of support for Dubbo's LGBTIQA (Lesbian, Gay, Bisexual, Transgender, Intersex, Questioning and Asexual) residents.

Rainbow Alliance of the not-for-profit Connected Communities Project and headspace Dubbo have joined forces to launch the march, considered the first to be staged in Western NSW.

Rainbow Alliance spokesman Nicholas Steepe said the march would "celebrate diversity" and be a "public demonstration" of the growing support at Dubbo for LGBTIQA people.

"Over the last two years I've seen a massive shift in attitudes towards LGBTIQA people," he said.

"Dubbo's a great place and I think attitudes will continue to shift."

Mr Steepe said the march, synonymous with big cities rather than country communities, also sought to raise awareness of the importance of building support services in regional and rural communities, and curb the flow of LGBTIQA people to Sydney in search of "more inclusion and acceptance".

The fun day will feature a range of activities and entertainment, including performances by Dubbo singer Isaac Compton, face painting, a jumping castle, Zumba demonstrations and a free barbecue lunch.

Among the service providers will be ACON, a health promotion organisation with a central focus on HIV/AIDS.