The festival was scheduled to run from November 18 to 21 - but ChristchurchNZ announced today the event cannot proceed under alert level 2.
It has been rescheduled for spring 2022.
"We would like to thank all the event partners, suppliers, performers and staff who have worked extensively over the last two years to develop this exciting new event," said ChristchurchNZ chief executive Joanna Norris.
"ChristchurchNZ is looking forward to reactivating the program in 2022, in partnership with the festival producers Strut & Fret, and to delivering the best event possible in a safe and fun environment."
The South Island Moon Festival is the latest in a string of events cancelled due to uncertainty over the ongoing Covid alert levels.
Earlier this week, students were told Canterbury University's Tea Party and Lincoln University's Garden Party had both been cancelled this month. The events' organisers say they were unable to meet the vaccine certificate requirement for large-scale events.
Last week the New Zealand Agricultural Show, which was set to take place in Christchurch in November, was cancelled for the second year in a row.
