Fireworks Australia has been contracted by the ACT government to put on the show, at a cost of $99,000.

Two 15-minute shows, at 9pm then midnight, will see fireworks launched over the east, west and central basins of the lake.

"The fireworks barges will be synchronized so that when it's a purple, it'll be purple right across the three basins - I think that'll look pretty cool," fireworks manager Martin Brady said.

The setup for the event has begun, with crews putting barges on the lake in place on Wednesday morning.

About a dozen technicians will be involved, stationed in booths around the lake on the night, Mr Brady said.

"From the very beginning there was a pretty strong COVID-focus on the whole plan so it hasn't changed," he said of the plans for the show.

Canberra has gone without fireworks for the past two years, due to bushfires and then COVID-19 precautions.

New Year's Eve had previously been staged at Civic Square, but has been moved to the lake to enable onlookers to spread out more.

The event has historically attracted about 30,000 people, the government contract said, but the ongoing pandemic makes it difficult to estimate the size of the event this year.

Authorities' new emphasis on personal responsibility as Canberra continues to report hundreds of daily cases of COVID-19 could see some Canberrans choosing to stay in on the night.

The ACT reported 138 new cases of COVID-19 in the 24 hours to 8pm Tuesday, down from a record 252 cases the day before.

Others have scattered, leaving the city to spend time with family and friends after another year of lockdowns.

Health Minister Rachel Stephen-Smith on Wednesday said people should still rely on preventative measures such as mask-wearing during celebrations.

"If you're going to that New Year's Eve event out on the lake, it's spread out, it's a fantastic environment to be COVID safe, lots and lots of fresh air circulating," she said.

"But if you're close with other people in a food line, or you're sitting close with people that you don't know, please also wear your masks in that environment as well."

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Andrew Stefanou, co-owner of Cannoli Brothers, one of the vendors, said it was an opportunity for businesses such as his to relaunch after a difficult two years.

"It was good to do a New Year's Eve gig for the team and for the business, and then we're back into the farmers markets in February and lots of other events are happening," he said.

Mr Stefanou is confident the event will take public health into account, but he would still be taking precautions.

"My team will be having protective gear on and practicing safe COVID practices ... to minimise any risks to the team, and to the public from my team," he said.

He said he had purchased rapid antigen tests for all of his staff ahead of New Year's Eve for added reassurance.

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