This year, it is being held in conjunction with the inaugural Outside Art festival, showcasing visual arts.
Jazz Festival co-ordinator Julie Barclay said jazz and art fans were in for an incredible time.
''It will be a big weekend in town, especially combined with the [Outside Art] festival - don't they go well together.''
Following the success of previous festivals, there had been an increase in interest from local musicians, as well as groups from around the country, she said.
Using only New Zealand bands made the Harbour St Jazz Festival stand out from the rest.
''We have so many amazing jazz musicians in New Zealand, why would you go overseas?'' she said.
Events would take place at a variety of venues, and Harbour St would be closed to traffic on Sunday to allow for performances on a stage and along the street, as well as food and craft stalls.
The Outside Art Festival, which also runs over Otago Anniversary weekend, begins on Friday night with a projection mapping show artist Michel Tuffery titled Vai Moana, which will transform the facade of the Custom House building in Oamaru's Victorian Precinct into a moving canvas.
The programme features workshops, open studios, demonstrations, interactive installations and exhibitions to showcase the local arts community.
A Waitaki Arts Trail map listing 26 local artists, galleries and studios will be launched.
