Wollombi Valley Progress Association president Simone Smith said the country fair is designed to be a community reunion, which aims to help locals reconnect and aid their journey of recovery following the 2019-20 Black Summer bushfires.

Wollombi was surrounded by bushfires for several weeks that summer, with a number of homes damaged and lost.

Assisted by Cessnock City Council's community recovery officer Melissa Boucher, the Wollombi community was successful in gaining grant funding from Primary Health Network (PHN) to hold the event.

"Thanks to PHN grant funding, the Wollombi Christmas Country Fair is shaping up to be a fabulous way for the Wollombi community to recover and reconnect following several very difficult years," Ms Smith said.

"There will be local produce for sale, local entertainment for enjoyment, local community groups volunteering their services and a host of community social and health services will make themselves available on the day.

"Thanks to grant funding there will also be a visit from Australian Walkabout Wildlife Sanctuary, amusement rides, face painting, popcorn, fairy floss and fun games free of charge to local families."

Families from outside of the Wollombi area can pay a small donation for a ride armband.

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The markets are being coordinated by Corner Block Markets and will be held opposite the tavern, next to Wollombi Real Estate.

The country fair will run from 10am to 3pm Saturday, while the woodchop will start at 11am.

A sanctioned NSW Axemens Association event, sections include NSW 300mm standing block champion, underhand handicap, sawing events, standing block handicap, two board tree climb and a boys' chop.

Entertainment by Crawfish Stew will follow at around 6pm.