The Light Up Winter event will be held in the Cromwell Mall on August 4 and is being organised by the Cromwell and Districts Promotion Group.
The event would feature a night market, live band, street entertainers and children's activities, group community relationships manager Brigitte Tait said. The mall would be decorated with fairy lights and the event would be family-oriented.
The evening would end with a ''spectacular finale'' of a mass release of paper lanterns into the night sky, Mrs Tait said.
People will be able to buy a lantern before the event and they will be released from the Big Fruit reserve area.
Mrs Tait said the lanterns were biodegradable and a health and safety plan for the event was being prepared.
The Cromwell Volunteer Fire Brigade was happy for the event to go ahead and the Central Otago District Council had approved the event, subject to a health and safety plan being in place.