Since 1999, Fireworks Australia has run the event to showcase the latest fireworks imported into the Australian market.

Fireworks boss Martin Brady said, the business which now deals with special effects technology, as well as pyrotechnics, will do something different for their clients next year.

"I don't know if it will be cancelled forever, but it is cancelled for next year," Mr Brady said.

"We loved doing it there, but just every year the amount of infrastructure we had to put in, it was very expensive to run for the public.

"It makes a very large loss... those costs were unsustainable long term," he said.

To run the event the organisers were required to submit traffic management plans and organise traffic display message boards, as well as organising security and paramedics for public safety.

"It is sad and unfortunate, but it is a commercial reality."

This year, the inclement weather turned away some visitors, however, it was estimated 3000 to 4000 people watched the display.

The festival usually attracts 8000 to 10,000 spectators.

"The absolute pinnacle for us is public safety, so unless we can get people into a venue with those sorts of numbers it wouldn't have worked unless we spent a lot of money on the infrastructure, we couldn't guarantee that."

The demonstration started at the Gunning Golf Club and word of the free show soon spread, it wasn't long until long banks of traffic would queue up to see the show, Mr Brady said.

It became a public festival to manage crowds and became increasingly popular, especially with caravanners.

Following the professional demonstration of fireworks, there would be a large pyro-musical display.

"We always tried new ideas there before we tried it anywhere else."

Mr Brady assured the Crookwell Gazette that business was booming and Fireworks Australia would remain a local company.

"We've never been busier. We're up around 300 shows a year," he said.

Next year, the fireworks business will showcase new special effects technology indoors, which is increasingly in demand for the companies clients.

In the past, the festival was a chance to film new pyrotechnic imports, but they rarely need to do this anymore.

"That requirement is no longer there. We have our own agents based in China so they're filmed before import.

"On top of this we also engage with the community at Gundaroo, we are involved with the NSW Rural Fire Service and the Gundaroo Music Festival, so we have some social engagement."

By Thursday afternoon of the announcement, the post had already attracted around 100 comments from residents and visitors expressing their disappointment via Facebook.

Gunning resident Kathy Johnson wrote, "so very sad for the community of Gunning as the revenue raised by local institutions was a great benefit for our small community...

"This is a very sad farewell for the residents of the wonderful small town of Gunning."

Ms Johnson told the Crookwell Gazette, "the Lions Club of Gunning was getting revenue, Dalton Public School, and small stall holders too."

"It's sad for the community and the revenue that comes in from it was amazing."

The festival was a major tourism attraction for the village of Gunning, which has a population of around 650 people.

Roslyn McLoughlin of the Lions Club of Gunning said, "I can understand their financial decision even though it will impact the community."

The club has catered at the festival since its inception.

This year they sold about 700 sausage sandwiches for $3 each.

This was was well below normal, Ms McLoughlin said.

"Normally there is a sea of people. This year it was cold, and bleak, and windy," she said.

She said the festival would be missed greatly.

"It brought a a lot of family and friends together, and a huge number of caravanners into the town. "That brings people to the local community to stay for a few days and shop at our local shops."

Dalton Public School raised money selling glowsticks.

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