Organisers estimated 3000 to 4000 people watched the display. However, many stayed home due to the weather. The festival usually attracts 6000 to 10,000 spectators.

The wind dropped by 7pm, although the temperature was down to eight degrees and rain drizzled.

Spectators rugged up while residents watched the display through their windows or by fires lit in their gardens.

The NSW Rural Fire Service remained nearby.

People wanting to view the fireworks had been on standby all of Saturday. Peak gusts during the day reached 69 kilometres per hour, as recorded at Canberra Airport.

Fireworks Australia said it would postpone or cancel the display for winds over 40km/h but remained optimistic. Fireworks boss Martin Brady said on Saturday morning, it was "very likely" the fireworks would go ahead.

Organisers were on site setting up the fireworks display from 7am and reduced the display area to maintain safety with the vigorous winds.

"It's been months of preparations and I think it's a great thing for the town. People have come from North Queensland and Perth. It got on the nomads' radar about ten years ago and has been growing ever since," Mr Brady said.

Hundreds of people had camped at Gunning Showground since Thursday, in the hope of front row seats to the firework display.

Gary and Andrea Smart travelled from the Southern Highlands.

"Last year we came on the Friday, but this year we came on Thursday to get the best spot," Mr Smart said.

Eight-year-old Cain Doosey gave a thumbs up as the wind blew through his hood on Saturday morning. He and dad Pete Doosey came from Shoalhaven Heads.

"We turned around last night after we heard about the weather but decided to come again today. Who cares, it's about being away with my son," Mr Doosey said.

They had pitched a tent with friend Ryan Duncan from Picton. He arrived on Friday evening despite the Dooseys turning around.

"First in best dressed," he said. "We'll make the most of it."

Gunning Fireworks Festival is said to be one of largest held outside of Sydney. There are 24000 fireworks in the finale display. It's an opportunity for Fireworks Australia, from Gundaroo, to showcase its products to fireworks companies across Australia. They were expecting 250 VIPs to watch and purchase fireworks.

Organisers said it was the worst weather they'd had on Saturday in a long time.