But others remain determined to push through with plans, even though they know they might only be one positive case away from a second year of cancellations.

Events like Rock Ballarat, Ballarat BeerFest, Trentham Spud Fest and Clunes Booktown all at this stage plan to go ahead.

For organisers, these events take months to plan with the coordination of sponsors, booking vendors and creating the vibe that many are known for all part of the work.

But now they have an even more pressing issue and it's all surrounding the red tape of COVID-safe planning.

The Ballarat BeerFest and accompanying FunknFest are just four weeks away, but organiser Ric Dexter is still waiting on his COVID plan - submitted in December - to be ticked off by the Chief Medical Officer's office.

Until that is confirmed, he is unable to secure a liquor licence for the event.

"We submitted our COVID-safe plan in December, but it's still to be stamped, although we have had it verbally approved," he said.

"Unfortunately it's a case the bureaucracy doesn't talk to each other, the left hand has no idea what the right hand is doing."

BeerFest usually attracts 3000-4000 people, but this year it has had to be split up across two sessions to comply with social distancing measures.

Fortunately for organisers, Mr Dexter said ticket sales were advanced from the same time last year.

The new FunknFest planned for the next day hopes to attract up to 2000 people, with a line-up featuring all Victorian artists.

A small town which is praying for a return of its major event this year is Trentham, with its SpudFest planned for May 1 after it was cancelled for the first time in its history last year.

Convenor Helen Macdonald said after last year's heartbreak, there was always that fear it could happen again.

"Having to cancel was horrible, heartbreaking for the community," Ms Macdonald said.

"Literally only this week, we've said 'okay, let's go, let's start planning it again'."

Ms Macdonald said the red tape is tricky "because they keep moving the goal posts".

"We are challenged as we are not a ticketed event, we don't know how many numbers we'll have on the day," she said.

"Because it's the whole of the town, how do we keep our town safe? How do we keep visitors safe? How do we celebrate the beauty of the town without putting others at risk?

"We have to be aware that some of our vendors might not choose to come, it could be any reasoning like liquor licensing. We have three roads in and out of town, save for putting a steel ring around us, we can't stop people from coming.

"Right now, we have to get a COVID plan six weeks before. There are a lot of sleepless nights, it's really, really hard with a volunteer committee."

Ms Macdonald said at the end of the day, it was the volunteers and the town's people that made the event a success.

"We're asking people to give up time, their effort for something that may not happen again and that's the risk," she said. "That really was the big dilemma of whether we do decide to go ahead again.

"But we have to at least give it our best shot, if we did say, 'it's too hard, not going to be, let's plan for next year' then suddenly you've had a three year gap.

"Our attitude is we give it our best shot this year, if the community sees that, they'll be there to support it."

Another small town festival which is being planned is the Smythesdale Fiesta, an arts and cultural event which was originally planned for October last year, but has been confirmed for February 7.

Co-ordinator Barry Wemyss said the amount of compliance required had snuck up on organisers as they prepared for the event.

"We need more manpower which we haven't had to contend with the past," Mr Wemyss said. "It's more education about how to engage, how to enter buildings, putting up the social distancing signs. We're doing all the right things and we had to put up a COVID-safe plan.

"The whole event is free, but this year we've taken away the open mic event from the pub, Last year, it was so full you couldn't put a cigarette paper between people - this year, we just can't do that."

Mr Wemyss said cultural events - art or festivals - were the strength of small towns.

"There is a lot of community spirit in small towns," he said. "These types of events give them a purpose make it worthwhile for people to live in the place.

"It's a chance for people to get out, get involved and we could be a part of this - it creates other opportunities for other events as well."

One of the small towns that relies heavily on its events is Dean. It's two biggest events occur in September (Kite Festival) and October (Sheep Dog Trials). Both were cancelled in 2020.

Coordinator Brian Maher said it was hoped that organising of this year's events could begin in April or May.

He said no-one wanted to be the small-town event that caused a possible outbreak, so compliance was an issue that needed to be addressed.

He said without the support of the Hepburn Shire, a lot of the events would not be possible.

"With continued and ongoing support from shires and councils, we might be able to get things turned around again," he said.

"They've (Hepburn Shire) been terrific - if they continue to support things, maybe we'll get through it."

Mr Dexter said he would like to see promised festival funding from the state government come through to help small communities on their big days.

"At this stage we haven't seen a cent from the state or federal government," he said.

The Victorian Budget 2020/21 in November renewed the Regional Events Fund for the next four years with $20 million to continue supporting great events outside Melbourne.

As yet, no details have been received on how that program will operate or what events will be funded going forward.

The State Government was unable to provide a response prior to deadline as to when the $20 million package would be distributed and also about details of how festivals could apply.

The City of Ballarat also did not respond.