A motion was moved at Council earlier this month to make the difficult decision due to COVID-19 restrictions and for people's safety.

Lithgow Tourism manager Simon Francis said that given all such events are being cancelled across the nation Council made the early decision to postpone Lithgow Halloween.

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"Given the event draws thousands of attendees who are primarily shoulder to shoulder for many hours and, as Halloween only comes around once per year, the event postponement has meant it is being cancelled for 2020 as a street festival," he said.

Mr Francis said that Lithgow will be no exception to the impacts on tourism that COVID-19 is causing.

"All domestic tourism in Australia has been, and will continue to be, significantly impacted by event cancellations, travel restrictions and social distancing expectations due to COVID-19," he said.

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This is the first time the event has ever been cancelled, but will be back when 'practical'.

"But for the safety of people and compliance with the forecasted time frame for restrictions on mass gatherings, Lithgow Halloween will not be able to take place until at least 2021," Mr Francis said.

"Lithgow Halloween showcases our amazing community, gives an outlet for creative expression, and a reason for people to travel and stay in Lithgow."

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According to Mr Francis, Council's tourism team is at the very early stage of scoping the potential use of digital technology to still run parts of Lithgow Halloween 2020 in some shape or form.

"Specifically the Lithgow Halloween Film competition and maybe a best dressed online competition? Obviously we will need to see how the next few months start to unfold before finalising such decisions," he said.