The tourist theme park was warned that it would lose its licence to run dance parties if it failed to comply with new safety and security measures.

The warning followed complaints from neighbouring residents concerning noise, the use of illegal fireworks and litter.

Extra security guards, noise restrictions and a traffic management plan are among the precautions taken to ensure tonight's event - expected to attract 4500 people - goes ahead without a hitch, its owner Keith Ryall said.

The measures were introduced to comply with restrictions imposed by Moorabool Shire Council.

They include creation of noise, traffic and emergency management plans.

Failure to comply with the restrictions would result in Kryal Castle losing its permit to hold similar events in the future.

The council received several complaints from residents and police following several of the events last year which attracted about 5000 people.

The dance parties have been held at Kryal Castle for the past eight years with about two functions annually.

Mr Ryall said the events boosted the local economy in many ways.

Many people stayed overnight in Ballarat, purchased food and other goods in the city, he said.

Chief Inspector Bob Barby said he felt that adequate conditions had been imposed to improve the situation.

"Those conditions have been placed and if the party organisers abide by those

conditions I would expect that there would be no problems," he said.

"I just hope young people can get out there and enjoy themselves without having a negative impact on the local community," he said.

His main concerns revolved around the use of fireworks.

"I have major concerns about that in light of the current weather conditions," he said.

However, he said two firetrucks would be on stand-by at the event.

Chief Inspector Barby also praised the efforts of the Moorabool Shire Council for addressing residents' concerns.