The Psyfari music festival has cancelled 2019 events, citing the situation in NSW and the "war on festivals" as the reason for the shut down.
In a Facebook post, organisers have said that despite this being the 10th anniversary of the camping festival, new rules and regulations made it a "recipe for disaster" to push ahead with the event.
"We are unfortunate to be in the wrong place at the wrong time when festivals are the new scapegoat of a failed government and their failed war on drugs," the Facebook post said.
"Excessive rules, bans on BYO alcohol, overly heavy police presences, this is not what we had in mind.
"The current political climate surrounding festivals in NSW has made this something harder than ever before, and it really seems like a recipe for disaster.
"Either they don’t seem to understand the desire for freedom and the desire to be part of a community, or they do understand and feel threatened by this.
"While drug-related deaths at festivals are a very serious matter, they really do make up the tip of the iceberg. To put things into perspective, drug-related deaths at festivals on average make up less than 0.5 per cent of all drug-related deaths in Australia, but festivals are an easy target, and an insignificant sacrifice to a blind government with its head in the sand.
"To put blame onto festival organisers is an extreme measure."
Organisers also claimed that ticket prices would be pushed up to amounts near $500 due to alleged costs pushed on organisers.