Katherine Town Council has made the "very difficult" decision to cancel the annual Carols by Candlelight event.
In a statement released on Friday afternoon, Council announced they had made the decision because of the ongoing COVID-19 situation in town.
"While the COVID-19 situation looks to be improving, there has been mention that a number of restrictions may still be in place as the community transition out of lockdown and into a lockout situation," the statement read.
"With many performing groups unable to get together and rehearse, there is no guarantee how many performers will be ready to take the stage in time for the event on 11 December 2021.
"We thank you for your understanding and hope that you are staying safe during this time."
Carols by Candlelight is set to be replaced by an alternative event in the new year.
Mayor Lis Clark said she was disappointed that the decision had to be made.
"The decision to cancel this year's Carols by Candlelight was a very difficult decision and not something we wanted to do," she said.
"Council will be putting all their efforts into finding an alternate event for the Katherine Community to enjoy in 2022."
Council has also made the decision to extend the close date for the Christmas Light Competition, which was originally due to close on Sunday December 5.
Registrations for the competition will be extended until the Sunday December 12, with judging to commence between 17 and 18 December and winners to be announced on December 21.
Council also announced earlier today that their International Day of People with Disability Morning Tea, which was set to take place on December 3, will be postponed to early 2022.
"While postponing the morning tea was not our ideal outcome, we want to ensure that the community is in a safe place, and we are able to acknowledge everyone within the disability community without restrictions," Ms Clark said.
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