Kurrajong community engagement manager Cathie Smith said the decision to cancel the race day, which was scheduled for October 16 and attracts about 5000 people, was "gut-wrenching".

"It has been incredibly difficult making this decision but with the continuing lockdowns, the intensifying restrictions which impact on the Murrumbidgee Turf Club's operations and the uncertainty we all still face, we will not be able to hold the Kurrajong Race Day on October 16," Mrs Smith said.

"It's steadily grown and it's a huge financial loss to us and it will be hard to make that back, especially on the back of last year's cancellation.

"All our events this year have been cancelled so we've had a significant loss over two years.

"We have hundreds of volunteers on that day and we usually have about 2500 children and everyone would have to be seated.

"It has such a reputation for being a family day out and for businesses thanking their staff, so it's a huge loss to a lot of people."

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Mrs Smith said 33 Kurrajong Race Days had raised raising more than one million dollars for projects that would not otherwise have been possible

"This year's Race Day project was particularly exciting and would have seen significant advancement of Kurrajong's Hildasid Farm being developed with and for the community," she said.

"A substantial part of the money from the race day goes to the farm so we're starting to feel the pinch.

"I just hope some of our sponsors continue to support us as the money will go towards Hildasid Farm."

Mrs Smith said plans were underway to have the farm open to the community sometime next year.

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