The family-friendly Colour Terang Festival will run along High Street on Friday from 10am-3pm.

A colour 'splash' where people throw powder at each other will be held near Terang Civic Hall at 1pm.

Terang Progress Association president Ben Dennis said it would run no matter the weather conditions.

"We know any long weekend there's lots of people coming through so we thought why not tap into that and get people to stop - not just for a toilet break but to spend a little bit of time in town," he said.

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Mr Dennis said the activities would run along the avenue from the civic hall to the cricket ground.

"We've got some of the favourite type of activities with the street market and colour 'splash', but a few new ones as well," he said.

"We've got the giant kites that were popular last time - they're eight metres long so they can be seen from miles away.

"We've also got kite making workshops for the children."

Choir workshops were held throughout the week with conductor and composer Dermot Tutty from Melbourne which will culminate in a performance on the Friday.

Mr Dennis said a few additions included a butterfly house and the Federation Handbells.

"They're housed at Deakin University (in Warrnambool) but some people wouldn't realise there's a set so close," he said.

There will also be live music performed across various stages.

The inaugural festival was held in 2019 with the next two years cancelled last minute due to COVID-19 restrictions.

"It's nice to actually be able to run this year's event," Mr Dennis said.

"To have the confidence to go ahead this year was really nice.

"It's fantastic because everyone's been screaming out for events to go forward again."

The event is partly funding by Corangamite Shire Council.

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