A regional NSW pride festival will go ahead after an attempt to cancel it, but the community has been left "fractured and hurting" from highly emotional public debate.
The Rainbow Festival in Orange, central west NSW, will be held later this month, after an overwhelming majority of local councillors voted down a motion to withdraw council support.
Cheers rang out in the city's council chambers after the 10-2 vote on Tuesday night, as LGBTQI community members and their supporters embraced and waved pride flags.
The council announced the inaugural festival last month, featuring celebrations like a parade and drag competitions to increase visibility and tolerance in the growing region.
But councillor Kevin Duffy put forward the motion to cancel council's involvement.
"Sexuality, gender and identity are not jurisdictions or charters of the Orange City Council, ideologies that we should be nowhere near," Mr Duffy told the meeting, which drew a crowd of 200.
A group describing themselves as "locals for locals" handed out flyers days before the meeting calling for the cancellation.
The document claimed activities like drag queen story time and face painting targeted and "sexualised" children.
Kris Dhillon, who opposed the festival, said drag queens were "paid adult entertainers, not mental health counsellors".
"This festival appears to be nothing but a recruitment campaign for children and teens into transgenderism," Ms Dhillon told the meeting.
Adelaide Pratt, a young doctor, urged councillors to disregard "absurd" arguments, saying Australia's gender affirming care was careful and considered.
Festival opponents should instead educate themselves about the mental health burden on the LGBTQI community, Dr Pratt said.
"We want all young people to know they will be loved and accepted for who they are," she said.
The council received a $125,800 NSW government grant for the festival.
A financial report before council said it would have to pay performers and suppliers if the festival was cancelled, but could not claim those costs under the grant if there was no event.
NSW Labor MLC Stephen Lawrence said the state government provided funds because it recognised the high levels of suicide among members of the LGBTQI community.
Mr Lawrence told the meeting he remembered feeling he did not belong when he realised he was gay as a child.
"Now I live a very happy life, but it's not easy as a gay kid and that's why this sort of festival is so important," he said.
"I know it's brash and it's loud, but it has to be to reach the people it needs to reach."
Councillor Melanie McDonell said the community was "fractured and hurting" over the motion, which she described as bigotry.
The campaign against the festival would have long-lasting effects, Greens councillor David Mallard said.
"It's caused anxiety and distress for members of the LGBTQI community and the family and friends who love them," Mr Mallard said.
"It's caused damage to the image of Orange as a progressive and welcoming city."
The festival will run from March 22.
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