The four-day Daylesford festival, which runs from March 9 to 13, will include performers and visitors alike travel from around the state to celebrate the regional Victorian LGBTI community. 

The pinnacle will again be the annual parade which takes place along Vincent Street on the Sunday, while a host of events and performances will keep the thousands of attendees entertained across the three days.

Ms Tinkler said the grant would play a crucial role in allowing the event to continue to grow into the future. 

“We’re celebrating our 20th anniversary, so we’re at a very important point in the trajectory of the event.

“One of the main things is to really underline that regional Victoria is safe and supportive of the LGBTI community and, yes, we do exist, absolutely, and that there’s also opportunity for tourism growth within the sector with the pink dollar.”

The grant, from the $20 million Regional Events Fund, was presented by Macedon MP Mary-Anne Thomas on Thursday.

Ms Thomas said the event had played a critical role in putting Daylesford on the map and hoped the funding would ensure its continued success into the future. 

“I am enormously proud that the largest regional LGBTI celebration is held right here in Daylesford and I am thrilled to announce this support for the next three years, to make sure it stays right here,” Ms Thomas said.  

“Our community is enriched by the ChillOut Festival, not only through the diversity that it promotes, but it also attracts thousands of visitors to our region, supporting local hospitality and tourism businesses.”

The funding comes 10 years after the festival went into recess for a year in 2007.  Ms Tinkler said the ongoing nature of the grant ensured the stability of the event.  “It’s a really amazing opportunity to look at the sustainability of the festival and be able to plan into the future.”