Jindabyne in New South Wales is celebrating the 50th anniversary of the opening of the new town centre after the old site was flooded as part of the Snowy Mountains Scheme.

The new site was opened in 1964 and the old site was flooded as part of the hydro scheme to become Lake Jindabyne in 1967.

Thousands of people were expected to take part in the festivities in the town centre, including a parade, a visit from the Governor of New South Wales David Hurley and a formal reception.

The head of the organising committee, Gordon Jenkinson, said it was a major milestone in the town's history.

"The actual date highlights the opening of the commercial centre, the town centre of Jindabyne," he said.

Sorry, this video has expired Archival film shows the construction of new town

"People continued to live in Jindabyne until 1967, but there were no new buildings, or no new residents or businesses in the town after the 19th of December, 1964.

He said it was a three-year transition to the new town.

"In 1967 they blew the bridge up. The army wanted some practice, and as a statement of cutting the cord, that basically cut the cord.

"They had a procession up from the old town to the new town, it was called the Jindabyne Saga, and from that point on, the old town was flooded."

'It was a lovely little town'

Gerlinde Kluger lived in the old town as a child, before making the transition to the new site with her family.

"I remember it was a lovely little town. Everyone knew everyone, and of course we had the river running through the middle of the town," she said.

"Those of us who were kids at the time had the most wonderful time coming home from school in the summer and jumping into the water."

The fondness for the old town meant the move out of the valley was controversial.

Sorry, this audio has expired Farewell to Jindabyne

"I think a lot of the people didn't like the idea of leaving, I know we were quite happy where we were," she said.

"For a lot of the older people it was very, very difficult moving from the old town to the new town."

Mr Jenkinson said local landholders were also upset.

"That was probably the most prosperous farming land in the area, (and) some of the landholders still have regrets that the town was demolished," Mr Jenkinson said.

He said the new town was largely built from scratch.

"Jindabyne was pretty much a new town, they built a new town, they demolished most of the houses in the town.

"Some of the older folk felt quite sad, they were really attached to the churches and the cemeteries."

Immigrants get first taste of Australia in Jindabyne

The new town was built during a period of massive change for the region.

Workers coming to the region for the Snowy Mountains Scheme meant a farming town of 300 people grew into a hydro town of more than 5,000.

"A lot of those guys were coming from Europe, it was pretty much a third wave of immigration into Australia," Mr Jenkinson said.

"Most of those guys who worked on the Snowy Mountains Scheme, their first taste of Australia was in and around Jindabyne."

Gerlinde Kluger's family was part of an influx of that influx of European immigrants.

"All of the migrants were wonderfully accepted," she said.

"You never felt left out by anyone, you weren't ostracised by anyone, you were just part of that big family."

Recently the hydro town has become a tourist centre to cater for those heading to the ski fields.

An estimated 6,000 tourism workers live in the town during the winter.