The Rainbow Serpent Festival will go ahead as planned for more than 10,000 ticket-holders this Australia Day weekend after it received a last minute council permit.
Festival organisers Green Ant Productions said they were relieved that the Pyrenees Shire Council and emergency service authorities had reversed their decisions to deny the event a permit over safety concerns.
The $2 million festival near Beaufort was on the brink of being cancelled last week and facing expensive financial losses because the council was not convinced its emergency management plan was enough to keep party goers safe in a crisis, such as a bushfire.
The event that is in its 16th year made headlines last year when 34-year-old Epping man Daniel Buccianti died of drug-related causes.
However, Victoria Police, the CFA and Rural Ambulance Victoria gave their eleventh-hour approval at a meeting on Monday afternoon, after organisers scrambled to satisfy their concerns.
The news will delight more than 9,000 people who signed an online petition to save the festival.
Townspeople, including Beaufort Hotel publican Debbie Titherington, said the event injected precious dollars into the local economy, without which some shops would be forced to shut down.
Mr Buccianti's mother Adriana also came out in support of the festival going ahead and is due to give a speech to open proceedings.
A series of tributes for Mr Buccianti are planned, as well as a new buddy program to encourage people to look out for each other.
Festival director Frank Venuto said he was grateful to the council and emergency services for making extra time to reconsider the permit application.
“It's been a tough week and our entire team are now working harder than ever to produce the most spectacular Rainbow Serpent," he said.
"Thank you to our loyal fans who gave nothing but support and encouragement when we needed it most.”
Pyrenees mayor Michael O'Connor said local people backed the event but the organisers were "hopeless at paperwork".
Rainbow Serpent will feature more than 100 international and Australian acts, with live acoustic and electronic music, and performance and visual arts.