The festival director was forced to call off this year's event due to COVID-19 and does not want to make a decision on the 2021 event as yet

"I would like to put the decision off for as long as possible," she said.

"If held today, you could only have a maximum of 500 people at an outdoor, unticketed, stand up event, providing people from different households are following the four-metre square rule.

"Unfortunately it would be a logistical nightmare to mark out circles around town where families and individuals could stand during the parade and the festival itself, as other fenced events have done.

"Restrictions are easing in NSW and at this time it is too early to make a decision."

The festival and the Princess Ball are both run by the Rotary Club of Milton-Ulladulla.

Mrs Corrin-Smith is also president of the local Rotary Club.

The Princess Ball was called off earlier this year.

"If held today, you would be permitted to have the Princess Ball, with up to 300 people, following the four-metre square rule, inside the Dunn Lewis auditorium," she said.

"It falls under NSW Health's corporate events.

"Of course, there would be restrictions on dancing, so it would have to follow a totally different format. "

She and many others in the community hope the restrictions continue to be eased which would allow the ball and festival to go ahead in 2021.