Kevin Lynch died on November 12, 2008 and his daughter, Emma Pullar, said an "Arrowtown locals party" would be held at the Athenaeum Hall on Thursday night.
It is intended the event will be held annually to mark the anniversary of Mr Lynch's death.
Mrs Pullar said The Greatest Gig/Pink Floyd show would be a "full family affair" with her brothers Ben, Tom and Nick Lynch joining the band's drummer, Marc Hamilton.
His sister, Stacey, would join the Lynch Mob on vocals.
Nigel Hirst would play with the band on saxophone.
The Lynch Mob first performed Pink Floyd in November last year, as a special tribute to Mr Lynch just days before he died.
About 500 invited family and friends turned out at Peregrine and the show was intended to be a "one off", she said.
"Kevin had been teaching the band this music over the previous six months as a `new project'.
"However, the concert was so well received the band decided to perform the show again during the Queenstown Winter Festival."
Mrs Pullar said the sold-out Memorial Hall performance left the audience "in awe", so the band decided to sell the show, and it had several corporate bookings.
No pre-sales are available for this week's Arrowtown show.
There will be a $5 door charge.
Any money left once costs for the concert were covered would start the Kevin Lynch Musical Development Fund.
An "open guitar case" would also be set up for any other donations the audience wanted to give.
"We haven't actually nutted out all the details [of the fund] yet, but we thought doing a gig like this and any public stuff we do is a great way to fundraise for worthy causes.
"Since Dad was passionate about music and Arrowtown, we thought `Why not establish our own fund . . . to do our bit to keep music alive and well in the region?"'Mrs Pullar said the band hoped to increase the fund, making money available for local musicians, bands and singers to further their musical development.
"Logistical details" were being finalised, but applications would be made in writing.
She said the fund might also be used to help "expert tutors" come to the area and hold master classes, similar to those which were held during the recent ASB JazzFest.
"We just don't see enough of that kind of thing down here, and there is so much talent sitting here in the region with limited opportunities for developing that talent.
"So, that's where this all came from.
"Dad was passionate about music and getting people involved in it, so we thought this would be a great way to carry on his name and contribute something to the local musical community," she said.
The door will open for The Greatest Gig/Pink Floyd show at 7pm, and it will start about 8pm.
