For billions of people around the world, Diwali is about celebrating the triumph of good over evil, but for thousands of Indian migrants in northern NSW, it also means progress and freedom.

When Rashmere Bhatti was growing up in the seaside village of Woolgoolga in the 1970s, she had never heard of the festival.

Diwali is arguably the most significant festival in the Indian calendar, celebrated by billions of Hindus, Sikhs and Jains around the world, usually with extravagant displays of fireworks, prayers and food.

It was only after a trip to India in the 1980s and the implementation of progressive multicultural policy, that Ms Bhatti started paying closer attention to what the festival meant for life in Australia.

"There's three things that Diwali represents, it's good over evil, light over darkness and knowledge over ignorance," she explained.

Rashmere Bhatti has seen Diwali and Bandi Chhor Divas celebrations expand and become more inclusive over her almost 60 years in Woolgoolga. ( ABC Coffs Coast: Meghna Bali )

Woolgoolga residents also celebrate Bandi Chhor Divas on the same day, in memory of the sixth Sikh Guru, Guru Hargobind Ji, who was imprisoned for his religion.

When the Emperor gave the Guru permission to leave prison, he insisted he would only leave if other prisoners were freed.

As a result of the peaceful protest, he left with more than fifty prisoners.

To mark both events, thousands across the region will decorate their homes with clay pot candles and colourful lights and take part in a free communal feast at the Sikh temple in Woolgoolga — the first of its kind in the country.

"It's very special because it symbolises belonging, if you haven't got anyone, you're at one place to share food, enjoy and respect for the religion," Ms Bhatti said.

Diwali is celebrated with fireworks, prayers and food. ( ABC Coffs Coast: Liz Keen )

Changing community attitudes

In October, the iconic sails of the Opera House turned gold to mark Diwali.

Ms Bhatti, whose grandfather migrated to Australia in 1890, said the festival wasn't always celebrated with such fervour.

"There's been a significant change from when I was growing up here in the 70s," she said.

The 1968 members of the local Indian community were not allowed membership of Woolgoolga's bowling or RSL clubs because of racial segregation.

More than 500 people come to the temple to celebrate. ( ABC Coffs Coast: Liz Keen )

Over the years the Sikh temple has also suffered acts of vandalism.

But now 40 years later, the town is home to an estimated 250 families of Indian descent, and around 20 per cent of students at the local public school are Sikh.

The population is made up of the old families and a large influx of student visa holders, who were sponsored to stay because of a shortage of agricultural workers in the mainstream community.

"It's just a tapestry of the different cultures, intermingling at every level, western and eastern," Ms Bhatti said.

"I'm not going to try and sell utopia here, I'm sure there's people who don't like the blueberry farms… but the fact is it's all very peaceful."

Differing experiences

Somnath Bhaskar celebrating Diwali with his daughter Aaleah in Coffs Harbour. ( Supplied: Somnath Bhaskar )

Business owner Somnath Bhaskar said when he first moved to Australia more than a decade ago, he often missed how the festival was celebrated during his childhood in New Delhi.

"[I remember] crying for crackers, playing all night outside in smoke, and falling sick after eating all the sweets," he said.

But now, the Coffs Harbour local hosts his own annual party in the lead up to the big day.

Mr Bhaskar said he tried to prioritise celebrating his heritage and educating his daughter about Hindu practices.

He will mark the occasion with a small prayer at home and a trip to the Sikh temple with his family.

"[It's about] bringing everyone together, trying not to have any negativity, staying positive and [treating] every day like a celebration," he said.