Daylesford Cinema's President Gina Lyons said the group had appreciated the opportunity to operate at the Town Hall but had carefully analysed results and subsequently made the decision to suspend regular programming.

Ms Lyons said, however, that the volunteer-run group would continue to screen for special events and fundraisers at the venue until it was able to re-open at its new home at The Rex.

The cinema has attempted to operate outside of the Rex since October 2017 - at venues including Victoria Park and the Town Hall - but Ms Lyons said this had impacted its finances.

"We're all passionate about our cinema so it was a very difficult decision to make, however, as a Committee we have a governance responsibility to make decisions which are in the best interests of Daylesford Community Theatre Inc," Ms Lyons said.

"We are determined that our vision for the new cinema in the Rex will be realised, because we know how important the community cinema is to people."

Though the cinema is halfway completed, it cannot open until a certificate of occupancy is issued for the entire building.

Once dates are confirmed, the cinema group will be able to re-activate its plans for opening - formulated last year - including the establishment of a film club, a membership drive and a strategic plan.

Chief Executive Officer of Hepburn Shire Council, Evan King, said the requirement to obtain a planning permit and to revise the detailed plans had driven a delay.

"Once the detailed plans are finalised with the architects and contractors are reengaged, we will be in a better position to determine a completion date. At this stage we anticipate that it will be in the early part of next year," Mr King said.