The Brigadoon committee has made an "early call" to cancel the event for a second time this year.
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The Scottish Highland gathering was meant to be held in April, but was cancelled due to wet weather conditions, and was moved to August 3.
Brigadoon committee President Peter Rocca said the Bundanoon Oval was inspected over the weekend in the lead-up by the executive, where a decision was made.
"With the predicted winter weather forecast where more rain is expected and with no conditions to dry out the grounds, conditions under foot will not be favourable for all concerned," he said.
"Already there is damage to the oval and its precinct from normal visitations of locals and with the added thousands expected for our event the damage would be astronomical."
He said it was important to maintain the oval to ensure it could be used throughout the year.
The "damage throughout the village" from the increase in parking on the street verges with the closure of Jordans Crossing Park was also a factor in the decision, he said.
"The committee is deeply conscious of its duty of care to the health, safety and wellbeing of everyone who participates at or attends the Bundanoon Highland Gathering, where Bundanoon becomes Brigadoon," he said.
"We apologise for the cancellation of the event but the weather has beaten us yet again."
The event has been moved to April 5, 2025.