In an attempt to shrug off the bypass stigma and attract more people from the highway the Karuah Chamber of Commerce is planning the town's first ever music festival.

Thirteen bands are on the books already.

Chamber president and local business owner, Tony King said the bypass has brought good and bad changes to the town.

"It depends on how you look at it, the bypass has had a negative impact on small businesses in town but on the positive it's made for a very quiet main street," he said.

"The music festival will hopefully get people in, and the style is geared more towards the older generation, so if we can get them into town you never know, they might like the place enough to move here.

“The more people we can attract to the area and the more houses that are built, the more likely we are to sustain local business."

A host of folk, blues and bluegrass bands including Gleny Rae and Friends, The Lawnmowers, The Slowdowns and The Hardrive Bluegrass Band will play over the May 22 to 24 weekend.

In addition to the concerts around town, instrument workshops are all included in $20 weekend pass. Chamber secretary and manger of the local servo, Sharon Wedd, said the weekend-long festival will boost the town's economy.

"Businesses and the community will benefit from the festival and it will give the community the chance to see the town in a different light," she said.

"Not only will our accommodation providers benefit but local shops will have people in to buy general things like bread and meat - this was one of the things we thought about when coming up with the idea - it was important that we attract people for more than just a day."

Since its inception five years ago the chamber has tried to point Karuah in a new direction with the introduction of community events including its annual fun run to be held this Sunday. Competitors can test their skill at a 4km run and walk or an 8km run around the town. Starting at 10.30am, registration will commence at 9am at the community hall in Engel Ave.