Dubbo's 2021 DREAM Festival has succumbed to the COVID-19 pandemic like the one before it.
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Dubbo Regional Council, which had stepped up to run the festival in October, announced the cancellation on Friday.
Its manager regional events Kim Hague said the "difficult" decision had followed talks with sponsors, the committee, stallholders and others.
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"We are considering ways we can deliver an alternative to the DREAM Festival, similar to what we did with the chalk walk last year," she said.
"We will continue monitoring restrictions, and consider a different cultural event as restrictions start to ease.
"We may even bring the DREAM Festival forward in 2022 if restrictions and planning allow for it."
In 2020 the council was asked to take over the running of the week-long festival by its volunteer committee which "no longer had the capacity to continue to deliver the event in its current size and format".
It did not proceed last year because of COVID-19 restrictions.
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