Tanabata - meaning 'evening of the seventh' - is a Japanese star festival derived from the Chinese star festival Qi Xi (The Night of the Sevens).
It celebrates the meeting of Orihime (Vega) and Hikoboshi (Altair).
The milky Way, a river made from stars that crosses the sky, separates these lovers, and they are allowed to meet only once a year on the seventh day of the seventh lunar month of the lunisolar calendar.
In present-day Japan, people generally celebrate this day by writing wishes - sometimes in the form of poems - on small pieces of paper, and hang them on bamboo with other decorations.
The bamboo and decorations are often set afloat on a river or burned after the festival around midnight or on the next day.
This resembles the custom of floating paper ships and candles on rivers during Obon.
Organiser Hiroe Howell says she enjoys sharing this traditional Japanese festival with, not just the Japanese community, but the whole Rotorua community.
She says because it is the 10th anniversary there is more variety in the programme.
This year there will also be a karate demonstration and Japanese families in a brass ensemble.
Hiroe says Tanabata is similar to the Māori star celebration Matariki.
"Almost the whole Japanese community is involved in this event and supporting it."
She encourages people to come along, to share in the fun and a different culture.
"To understand each other is very important."
The activities are free, and there will be hot drinks and food available for a gold coin donation.
These donations will go towards fundraising for the Japanese Playgroup.
Noriko Watanabe is a member of the Taiko drumming group Rotorua RACCO.
She says they are a small team and they would like people to get to know what they do.
People are welcome to join them and do not have to be Japanese players, she says.
The Creative Communities Fund and The Arts Village are also supporters of the event.