MBIE's criteria for receiving part of the funding was that events must be socially, culturally, or economically significant for New Zealand, have no other market solutions to their woes and, without the support, would go under or need to be significantly scaled back.
Events that helped retain crucial event organisers or suppliers could also qualify.
"It was a significant decision for us to apply but we did as we knew we met MBIE's criteria," Kāpiti Food Fair co-owner Helene Judge said.
"We clearly fell into the position of needing to dramatically scale back for 2020 without this support so we are feeling hugely relieved and excited for the upcoming fair."
The fair has also just received $10,000 from the Kāpiti Major Events Fund.
"We are delighted.
"Receiving both funding streams means we can confidently do a mini scale-up this year."
The Kāpiti Coast District Council awarded $190,000 to five events which showcase a distinctly Kāpiti flavour and bring economic benefits by attracting visitors and boosting the local economy.
"We received a large number of applications this funding round and the quality was impressive," said councillor Rob McCann, who chaired the five-person fund panel.
"This contestable fund is designed to strengthen the events calendar and encourage fresh ideas and we're pleased to be able to provide certainty and support for major events here."
With Covid-19 significantly changing the events landscape, making securing sponsorship and planning ahead more challenging, council has allocated funding ahead of time by funding events in both 2020/2021 and 2021/22.
Part of the scaled up event will include a Coastella presented stage that will be located within a much larger Tuatara Bar.
The Zeal stage is also in for a make-over with more space, seating and shading for visitors to relax while eating and being entertained.
The fair has also been doing their part for the community by launching a #lovelocal campaign with support from Kāpiti Coast District Council along tree planting in the Mazengarb Reserve community fruit orchard as part of its waste minimisation strategy.
The purpose of the #lovelocal campaign is to support local businesses, encourage locals to take a site, improve the visitor experience and encourage ticket sales.
"We believe one of the best things about Kāpiti has always been its people and the lifestyle we can create around living, working and playing on the beautiful Kāpiti Coast," co-owner Jeanine van Kradenburg said.
"We're caring, welcoming and inclusive, and we like to support one another so we are hopeful more local vendors can come together as a community at the Kāpiti Food Fair.
"We feel very grateful that we can continue with our plans to run an event that Kāpiti can be proud of."
The fair is a member of the New Zealand Events Association and will be operating within the events sector's voluntary code developed by the association for alert level 1 conditions.
"By December we are confident visitors will want to attend Kāpiti Food Fair so they can have fun with good friends, good times and good food."
The fair is on rain or shine on Saturday, December 5 at Mazengarb Reserve, Paraparaumu. Entry is $10 per adult, half price for Gold Card holders/students, under 16s free.