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Event co-ordinator John Bone said it was touch and go if the event would go ahead this year.
A decision was made to cancel the event when Covid-19 restrictions limited crowds to 100 people.
But recently the decision was reversed, so the community event could return to the service lane between Church St and Gordon Rd.
Due to the earlier decision, it was too late to try to secure funding to run the event.
Fortunately, some surplus funding remained from last year and would be used to hold the family fun night.
The event, which was part of Festival of The Plain, would feature market stalls, a fleet of food trucks and a stage for performances.
Christmas Family Fun Night on between 5.30pm and 8pm on Saturday, December 12.