After three summers of climate and pandemic-related uncertainty, the shores of Lake Burley Griffin will light up over four nights, with night markets, food stalls and a spectacular laser light water show.

From January 25, the lake will become a nighttime canvas for a bespoke Australia Day show created by Oracle-Liquid, the company behind projections, lighting and special effects at Vivid Sydney, MTV World Stage and the Elizabeth Quay opening, among others.

They're teaming up with The Electric Canvas, which will be projecting a light and colour display on two water screens, with high-pressure water jets and laser lights set to music, depicting Australian experiences and stories.

The 12-minute shows will be played at intervals over the four nights so that as many people as possible can see them.

Funded by the Australia Day Council and organised by the National Capital Authority, Lights on the Lake is a free community event designed to bring as many people to the lakeshore as possible to celebrate Australia Day.

NCA chief operating officer Hamid Heydarian said the event had come together relatively quickly, and had been designed to "activate" the lakeshores and bring some life back to the capital for Australia Day.

And it was important that as many people as possible could enjoy the celebrations, after three less-than-stellar summers.

"We have worked with the providers in the past so we're very familiar with their capabilities," he said. "The team at NCA has been working over the past couple of months to pull together the show.

"We've also worked very closely with the traditional owners of the land for two reasons, one to make sure that we've consulted with them, but also ensuring that the show duly respects their culture."

There will be a Welcome to Country and water ceremony incorporated into the live projections.

Running from 5pm-10pm over the four nights, the event is designed to bring as many people as possible to the lake, and to the capital, and would hopefully be a yearly Australia Day feature.

Mr Heydarian said it would be akin to travelling to watch the fireworks or see light projections, but with the added markets and food stalls to complement the 12 minute shows.

"It is a huge event, and that's one of the reasons we've been very careful in designing it, and why it's running over four days," he said.

Minister for Regional Development Kristy McBain said the event would bring people together after some fractured summers.

"At this time of year, we reflect on our role as Australians, on the shared joys and responsibilities of that identity," she said.