Sunshine, water and inflatable balls at Queanbeyan River Festival

Organised by the Queanbeyan Council with assistance from the Eden Monaro Cancer Support Group, the festival will begin at midday on Saturday with activities for children of all ages.

Council spokesperson Ricky Tozer said it was a day for the city to come together and celebrate the Queanbeyan River.

"There aren't too many places in NSW that have a river this close to the CBD and can really make use of it. So it's something we really want to celebrate and get people down here to enjoy," he said.

At midday there will be a race down the Queanbeyan River, using only homemade boats and human propulsion, with market stalls running for the majority of the day.

From 1pm attendees can jump in an inflatable ball and float on top of the river, while Queanbeyan residents with sporting credentials can try their hand at the kayaks.

In the evening there will be live music and a walk up the river to see where the platypuses live. All events on the day will be free.

Part of the celebrations will be the awarding of the inaugural Clearwater Sculpture Prize, and some of the region's most talented artists were already displaying their work beside the river on Friday.

Wollongong family Michael and Jenny Grimm, with their three-year-old daughter Eva, were passing through Queanbeyan to Canberra when they decided to take in the sculpture garden.

"It's a really nice spot to have a walk and see the sculptures," said Mr Grimm.

The first prize of $3000 will be awarded at the start of the festival on Saturday, as well as the $1000

"'Re-Use Award" for work which has used 100 per cent recycled materials.

Sculptor Clare Martin, who lives in Burra and entered a sculpture called Barb-wire Canoe, said she was excited to see it had drawn in artists from all over the region.

"I gather there's people from [as far as] Braidwood," she said.