Zaque is a program for same-sex attracted youth aged between 12 and 15.

ChillOut, the largest gay and lesbian festival in rural and regional Australia, adds an estimated $6 million to the Daylesford economy.

It was cancelled this year after organisers struggled with volunteers, time issues and the size of the event.

They decided it would damage the festival to make it smaller after the successful tenth anniversary celebrations in 2006.

ChillOut president Jim Culbertson said Ms Fox's experience with running Zaque and her contacts with gay and lesbian groups across Victoria would help grow the event.

"Like all volunteer run community groups we struggle with continuity," he said.

"One of the things we get...is that she connects ChillOut with same-sex attracted youth which can only be good for the future."

Ms Fox said the aim for 2008 would be to expand the program to better involve young people.

"(My appointment) will create a stronger connection with gay and lesbian youth between Ballarat, Daylesford and the Hepburn Shire," she said.

"We want to create an event specifically for young people at the next event, something that's drug and alcohol free.

The event in the past hasn't had a drug or alcohol free event event for youth.

"The youth in Ballarat will be connecting with the youth in Hepburn to pull that off."