Organisers of the June 24 event wanted to double the length of the procession route this year, to start and finish at First Church in Moray Pl, because it had outgrown its Octagon circuit.
Carnival spokeswoman Dallas Synnott said the bid to extend the procession route failed because turning off street lights in Moray Pl became an "insurmountable issue'': switching off the lights in a section of Moray Pl would also turn off lighting on State Highway 1.
The carnival team would continue to work to get the procession route extended next year, she said.
"It's grown so much it deserves a bigger stage for people to see.''
Carnival lead costumier Hannah Johnston said the theme for the carnival this year was "nocturnal nature'' and would feature creatures native to New Zealand.
"Imagine bats emerging from a cave, eels writhing in a creek with glow worms and taniwha on its banks and owls circling overhead.''
The lanterns this year would have more movement and be more "fluid'' with extra joints, such as a "slithering'' eel and a giant snail.
Dancers would be the "snail slick'' and some of the costumes would be native plants, such as a "flax stilt walker''.
Carnival lantern artist and workshop co-ordinator Filipa "Fairy'' Crofskey said the lanterns that were being created included bats, a cabbage tree, a kiwi, a moa, moths and a weta.
A series of workshops would be held for the public to create lanterns shaped like morepork, koru and flax.
About 450 little lanterns would be made for the carnival precession.
Bookings for the workshops open on Saturday.
"Get in quick - they book out within a week,'' she said.
Dunedin Midwinter Carnival
When: Saturday, June 24.
Where: Octagon.
Procession starts: 6pm.
Who: More than 1000 people including stilt walkers, dancers and musicians, parade hundreds of handmade lanterns.
Lantern workshops
Workshop one: New Zealand native owl lantern.
Where: Otago Museum on June 3 and 4.
Difficulty: Easy.
Workshop two: Flax lantern.
Where: Community Gallery on June 10 and 11.
Difficulty: Moderate.
Workshop three: Koru lantern.
Where: Ocean Beach Scout Hall on June 17 and 18.
Difficulty: Moderate.
Bookings at www.midwintercarnival.co.nz.
