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It is difficult to define the concept of community wellbeing, as there are many different definitions. This concept can be described as the quality of life within community perceived by its own members. (Beeton, 2006). 

Wellbeing has both individual and public dimensions. The level of human involvement in their community is related to both their individual wellbeing and to the wellbeing of the whole community. Therefore, in order to sustain their wellbeing people need to be actively involved in social interaction with other members of the community. In other words, a community plays a crucial role in maintaining of the wellbeing of its members as it can provide an environment for social interaction (Australian Bureau of Statistics, 2001). For many people, in addition to their immediate circle of family and friends, their community is the source of support, guidance and social interaction. It helps people develop a sense of belonging and self-worth, as well as build relationships with other community members. These interactions are substantial forerunners to the wellbeing of the community as a whole (Small, 2007).

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Therefore, community festivals allow individuals and groups of people to be involved in the community through volunteering, participation in leisure activities and strengthening of social networks by providing entertainment and socialisation opportunities. Furthermore, a community can contribute to the development of social capital in the community (Small, 2007).

However, social capital cannot be established without certain opportunities to create social networks and social interaction among members of the community. Therefore, community festivals can be seen as one type of activity that offers this kind of opportunities for social exchanges between people. Thus, by encouraging active relations and interaction with other community members, community festivals can be seen as a growing stock of social capital in the community (Small, 2007). 

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