Cromwell is the destination for the 2012 cavalcade, organised by the Otago Goldfields Heritage Trust. Four walking trails, six riding trails and two wagon trails are planned, finishing in Cromwell on February 25.
Host town committee secretary Terry Emmitt said the cost of staging the hoedown to celebrate the end of the cavalcade was concerning and the question of whether that event should go ahead had been "seriously considered".
There was a possibility the hoedown could prejudice the financial success of the event and it was decided to seek grants to help with costs.
"For cavalcaders, the hoedown has a primary purpose of propagating good cheer, especially following a hard week on the trails. The marquee has ample room for hootin' and hollerin' and meeting of both cavalcaders and general public," Mr Emmitt said.
He and fellow board member Murray MacMillan declared an interest and took no part in the discussion on the topic at the board meeting early this week.
The public would also be able to buy tickets for the hoedown, Mr Emmitt said. The entertainment would be the same as at the 1998 cavalcade, which also finished in Cromwell - Marian Burns and the Glen Moffatt band.
" ... all cavalcaders who attended that event inform it was the best ever," he said.
All host town activities, including a country fair, will be held at the Cromwell racecourse.
Host town committee member Peter Mead said Cromwell had been the host town twice before. The nucleus of the organising group was involved both times.
Board chairman Neil Gillespie said he had been part of the 1998 cavalcade, which was "pretty successful".
Central Otago District Council tourism marketing manager Alison Mason said the cavalcade was seen as one of Central Otago's core annual events, boosting the area's economy, and recommended the board approve the grant.