Banbury Town Council has confirmed Canal Day will not be happening this year due to the Castle Quay 2 extension but alternatives are being explored.
The popular canalside event on the first Sunday of October has been placed on hold for 2019 but will be back next year, the council wrote on Facebook.
The construction of CQ2 – which includes a cinema, restaurants, a Lidl and a hotel – will reduce the space available along the canalside, while other factors such as health and safety and reduced parking have also been considered.
Cllr Colin Clarke, chairman of the council’s general services committee, said: “Canal Day attracts a huge audience.
“It’s an event that can’t be moved elsewhere in town, without the canal it just wouldn’t be the Canal Day we have grown to love”.
Last year’s Canal Day was initially cancelled as it was expected construction would have begun, but it was re-organised as work was pushed back.