Glenlyon Music Festival committee member Garry Eyles said organisers hoped to attract between 600 and 1000 people to the event, which will run from noon to 9pm on Saturday.

Mr Eyles said the festival committee wanted to retain the event's grassroots atmosphere.

"It's about the home-grown local acts. The local musicians are just as good, we've found no one could tell the difference at last year's festival," Mr Eyles said.

He said Glenfest had the potential to grow substantially over the next decade, but he hoped the event would retain its grassroots feel.

"We made a decision last year to keep it as a community event."

A courtesy bus will run between Daylesford and Glenlyon throughout the day and night.

Mr Eyles said Glenfest 08 would be full of fun, with kids activities, food, wine, stall holders and a minimum cost entry fee.

A feature of this year's program is a junior and open section song-writing competition.

The main stage this year will be under the shade of the reserves 100-year-old oak trees.

Committee member James Browne said relocating the stage would ensure a more adaptable event in 2008.

Extremely hot weather reduced crowd numbers at last year Glenfest, and the stage was in the middle of the reserve's oval.

"The tall oaks should provide plenty of shade and they will create a really good atmosphere at night. This is a much better place for the stage," Mr Browne said.

"The reserve is slightly greener than last year, which will also help."

The line-up includes Hepburn Shire bands The Sparnetts, Pontiac Slim, Tyquins Lane, The Shy, Breakneck Road, My Left Boot, Chloe Hall, Hi Jacked and Eammon Harraghy.

Plus visiting bands IRIE, Don't Mess With The Pony, Beck and Monique Kerr.

For the first time an album will be produced from the bands' live recordings.

The Victorian Multicultural Commission, Hepburn Shire Council and RegionalOne Credit Union supported the

festival with grants.