Usually held on the first Friday in September, the much-anticipated event involves a lantern parade and a festive gathering at TAFE Park, and has drawn crowds of up to 2000 people in previous years.

Under the current NSW Government restrictions, outdoor gatherings of more than 20 people are not permitted, therefore the festival - which was set down for September 4 - cannot proceed.

Cessnock City Council's general manager Lotta Jackson said it's disappointing the event cannot go ahead.

"This event has attracted up to 2000 participants in previous years. I'm sure many in the community will share in our disappointment but understand at this time we cannot proceed with the festivities," Ms Jackson said.

Take a look back at last year's Spring Awakening festival in the gallery below.