The Shrewsbury and Newport Canals Trust is staging the festival at Norbury Junction between Newport and Stafford from April 30 to May 2 and it will feature a floating market.
The event, which has not been held during lockdowns because of the Covid-19 pandemic, is free-of-charge and will open at 10am daily until 4pm.
Visitors can expect to see boats moored along about a kilometre of the Shropshire Union Canal offering all types of food and goods for sale.
People will be selling food, gifts, arts and crafts and all manner of items.
There will also be activities for all the family, street food, entertainment and boat trips as well as displays.
These will feature details of the work to restore the Shrewsbury and Newport canals.
Children's entertainment will be centred in the Junction Inn's garden field and will include a bouncy castle, face-painting and other activities.
There will be a traditional church service on Norbury Whard on the Sunday at 2pm.
Bainton and Berkhampstead, a working pair of historic boats which are undergoing restoration, will be available for visitors to see and volunteers will be on hand to talk about the important work being carried out.
The Junction Inn and Norbury Wharf Limited will be supporting the event and offering visitors plenty to eat and drink.
A narrowboat trip, or a longer cruise, will be available on the 42-seat Shropshire Star where people will also be able to enjoy food and drinks on board.
Both businesses will also be offering live music throughout Saturday and Sunday afternoons and evenings.
Car parking will be free-of-charge and available adjacent to the canal.
Organisers have said the event will offer families "a great day out" and people will also know that by taking part they are helping to restore the local canal network from Norbury Junction to Shrewsbury.