The fair was denied a permit for not fitting the use of the Ballarat Showgrounds rather than for COVID safety reasons, despite the updated restrictions which took effect this morning.

Social media posts by organisers 'Melbourne family fun fair' promoted the fair to take place at the Ballarat Showgrounds over two weekends, from Friday, June 11 to Monday, June 14 and from Friday, June 18 to Sunday, June 20.

Council said it only received an application for a Place of Public Entertainment permit on Wednesday afternoon, despite the event being announced on social media last Friday.

City of Ballarat director of infrastructure and environment Bridget Wetherall said the event was denied a permit as its purpose did not fit the permitted use of the showgrounds.

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"The carnival organiser has been informed that a permit cannot be granted on the following grounds: the event does meet the permitted use of the (showgrounds) site in accordance with the terms of the lease with the Ballarat Agricultural and Pastoral Society - that events must be agriculturally related," she said.

Social media posts promoted the fair as a 'COVID safe event' with a density limit of one person per four square metres.

Speaking to The Courier, organisers said each ride would have its own hand sanitiser station and rides would also be sanitised after each ride.

All patrons would also have to scan a QR code upon entry and wear a mask at all times, with numbers to be controlled by a COVID marshal at the gate with a clicker.

In a social media post on Thursday, organisers said this weekend's forecasted bad weather put the fair in doubt.

"The weather is not looking good for the fun fair, please keep checking our page as we have to put people's safety first and our employees'... We will update you soon as possible," the post said.

"The forecast for this weekend and next weekend is not looking good and the ground where people have to walk is getting soft and muddy and we have to put your safety first... Thank you for understanding."

The cancellation comes after multiple events this weekend were cancelled due to COVID restrictions.

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