The Blackburn Mela has been called off after bad weather left the festival site wet and muddy.
About 20,000 attended last year's event
Organisers of the annual festival said they had no choice but to abandon this year's event because of the ground conditions at the Witton Park venue.
More than 20,000 people attended last year's event, which celebrates Asian food, fashion and culture.
A scaled-down event will now take place at King George's Hall on Saturday, Blackburn with Darwen Council said.
The six-hour music show will start at 1500 BST.
Among the acts due to perform are Haroon, Shobra, Jas Revive, Alaap, Arif Lohar, and Jinx.
Council officers met to discuss whether to give the event the go-ahead on Tuesday.
They decided that ground conditions were too poor and that public parking may damage the park's football pitches.
It is unclear if the bad weather will affect Arts in the Park, which is due to be held at Witton Park on 14 and 15 July.