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The Cromwell Community Board has voted to decline any funding to WoolOn Creative Fashion Society Incorporated.
The WoolOn committee was asking for $34,121.50, and recommendations from council was that the board granted $10,000.
However, after extended discussions the board decided to not give any money towards the event, despite plans for the event to move to Cromwell and be hosted at Highlands Raceway.
Board member Tony Buchanan said it "was a shame" not to fund it, but said he didn't think it fitted with the remit of the board to focus on Cromwell.
He thought it highlighted a shortcoming that there wasn't a district-wide fund that could support events that were more about Central Otago than being about a specific town.