Since Sunday, when the NSW Health Minister banned mass gatherings of more than 500 people in response to the rapidly developing COVID-19 situation, there has widespread event cancellations across Port Stephens and the Hunter.

Jackie George, one of the organisers of the family friendly Tanilba Bay-based festival, said her team has responded to COVID-19 health advice by halving its usual ticket sales to 450 people, adding further hand-washing stations across the property in which March 21 event is due to be held and is urging attendees who are feeling unwell to stay at home.

"At this stage the festival is going ahead. Unless the law changes and we can't have gatherings of 500 or less," Mrs George said.

"The festival is held on a big open air property. It's also BYO and camping is open air so you're not on top of each other. We've done everything we possibly can to limit the spread of illness but we also need the public's help. Anyone who is planning to come but is feeling unwell, we're asking them to stay home."

Mrs George said she and her husband Barry were passionate about going ahead with the niche all ages, live entertainment festival to support the performing artists, vendors and staff hired for the event.

"The artists still want to come, we have food vendors that still want to come," Mrs George said.

"So many industries are closing down at the moment because of the virus. We want to keep these industries alive, make sure these vendors are getting a paycheck."

Mi-Sex, Karen Lee Andrews, V Tribe, Zeppelin Live, Salt & Steel, The Swamp Stompers, J Finn and Chase Makai are set to perform at the festival which will kick off at 11.30am on Saturday.

There will be a fireworks display as part of the festival at 8.40pm.