In the Blue Mountains of NSW, there are two Australia Day events I know of. The first and by far the largest in the mountains is Gnome Convention at Glenbrook. Organised by Rotary, the Gnome Convention features a stunning display of Garden Gnomes, dress up competitions and free music. In the past there have been dog training displays, show jumping and there is always a great market. The second one is just in it's second year of operation and is the Australia Day Fair at Springwood Public School. Two stages of music, great water fun for kids, circus acts and markets. Both events are very exposed so remember to wear protective clothing and sunscreen.