A popular festival north of Auckland will be dry after it failed to acquire a liquor licence.

A popular festival taking place north of Auckland this weekend will be alcohol-free after organisers ran out of time to get a liquor licence.

The Shipwrecked music and arts festival held at Te Arai, which runs from Saturday until Monday, will now be dry.

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Nearby Tomarata Lake has a night-time alcohol ban in place.

Tickets cost up to $250 and it's unclear if festival-goers will be offered any form of compensation.

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The event's website does not mention that the event is now alcohol-free.

In a double blow, heavy rain forecast for Saturday may further dampen festival-goers' spirits.

Logan Baker of The Greatest Show on Earth, which organises the festival, said "it's still going to be a beautiful event" despite alcohol not being available.

A police spokesperson said that police were aware that the event did not hold a liquor licence and would be "paying a visit" to the festival site.

A Stuff reader by the name of Hemi said he and seven other friends were looking forward to seeing some upcoming music talent but the non-availability of alcohol "changes a lot".

A special licence application was submitted to Auckland Council in early December but received strong opposition from neighbours and lake advocates in the quiet rural Tomarata dune lake area.

A hearing with the Auckland District Licensing committee had been set up for February 2.

But with a 10-day appeal period, even had the licence been granted, the organisers would still not have been able to sell alcohol at the event.

Having run out of time they withdrew the application on February 1.

Opposition included safety concerns at the site which is home to a sand mining operation, with event organisers encouraging swimming at the deep sand quarry lake.

There are also alcohol bans in place at nearby Te Arai Pt and Tomarata Lake at night.

There have been two successful Shipwrecked festivals on the land owned by Arnim Pierau in the past, next to Spectacle Lake, but they nonetheless have raised tensions with neighbours.

Pierau also runs chalet accommodation on his property.

In 2016 he applied for resource consent to significantly increase the size and number of events at the lakes but was turned down by independent commissioners.

Pierau then appealed to the Environment Court asking for five festivals of 3,000 people, two for around 500 people and 20 for 200 people - a total of 160 festival days annually until 2031.

Much of the application was turned down by the Environment Court due to concerns of the effects the noise might have for the rare wildlife at the lakes.

Previous festivals held at the lake have been controversial: the area has special significance for rare birds, including the rare Australasian bittern and the critically endangered fairy tern.