The organiser of an annual music festival near the Blue Mountains in New South Wales is vowing to make it one of the safest in Australia, despite strong objections from police.

Lithgow City Council has approved this year's Psyfari in the Capertee Valley, which is set to draw about 5,000 people later this month.

The organisers asked for the festival to be approved for the next three years, but the council has only given the go-ahead for this year's event.

It comes amid concerns from police in the Mudgee Local Area Command, who argue the high volume of drug and alcohol use in a remote area could pose a serious safety risk.

In a letter to the council, superintendent Anthony Joice outlined concerns about the lack of mobile and radio coverage in the area.

"Last year, a victim of an assault walked more than 15 kilometres overnight to a farmhouse in order to report an assault to police," the letter read.

Three men died in a car accident at Bilpin after leaving last year's event.

Police argued the safety measures being proposed at the festival were "grossly inadequate".

"The nature of the event itself and the number of expected attendees gives rise to a number of serious safety concerns," police said.

"The development application is devoid of any strategies to prevent people from bringing drugs to the event, and the promotional material does not publicly condone or expressly prohibit the bringing or taking of illicit drugs."

Ramped up measures to focus on road safety

But festival co-director Steve Demian said it was "definitely not the out of control, unsafe party" many people thought it to be.

"With all the safety initiatives we have in place for this year, it's genuinely lining up to be one of the safest festivals in the country," Mr Demian said.

"There are very few festivals that could come close to the list of safety initiatives that we've got in place.

"The fact that council has recommended we go for one year and not three years is totally understandable.

"They want to see how things go. A lot of things have changed. It's a day longer than it was in the past. We totally trust and respect council's decision."

Mr Demian said addressing road safety concerns was a key focus of this year's event, and it would now include free drug and alcohol testing.

"We've introduced car passes that directly fund drug and alcohol testing for drivers, so drivers now don't have to pay for a test," he said.

"The music actually ends about 20 hours before the festival ends. We've also sponsored a local volunteer group who are setting up a driver reviver about an hour or so into the journey on the way home."

Free drug and alcohol testing will be available at Psyfari for the first time this year. ( Supplied: Psyfari )

Lithgow mayor Maree Statham said the council had taken a "well-balanced" approach to letting this year's event go ahead.

"It wasn't a unanimous vote. There have been a lot of extra restrictions put on these people and I think that is fair," Cr Statham said.

"We didn't receive, to the best of my knowledge, any complaints from the people in the [Capertee] Valley. I think that it's mainly the concern of the police force, which is absolutely relevant.

"I think the police will be very busy that weekend."