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Held here for the first time last year, the family-focused event will be set up at the paddling pool end of Ashburton Domain near Walnut Avenue.
The Ashburton Festival of Colours is being organised by the Ashburton Indian Multicultural Charitable Trust.
Trust member Bikash Sukul said the aim of the event was "to strengthen bonds and revitalise relationships between people in our culturally diverse community".
Holi was a fun occasion for Hindus and involved eating and lots of colour.
The event would include classical and modern Indian dance, music, henna tattooing, raffles and giveaways.
There would also be food stalls, and adults and children alike would be able to take part in organised musical chair games, he said.
Packs of coloured powders, that are stain free, non-toxic and plant based, will be available to buy on the day.
The event will be opened by Skydiving Kiwis with a spectacular parachute display, and the colour splash will kick off with the release of colours from their parachutes.
Entry to the Festival of Colours is free and the event runs from 11am until 3pm.