Marlow's mayor has blasted the use of "bureaucratic" red tape after the Marlow Procession was scrapped for the first time in 25 years.
The annual procession, which takes place before the Marlow Carnival in Higginson Park on September 17, attracts thousands of people from all over the county, and involves a march of up to 200 Marlovians.
But organisers have been forced to cancel the procession because of new legislation which they claim has priced them out of staging it.
For the first time ever, it will require diversion signs along all roads on the route, from Foxes Piece School, eventually down to Higginson Park.
And Cllr Roger Wilson said that costs could reach up to £1,000, which the Community Association, the charity that stages it, simply cannot afford.
"I'm really upset with the bureaucracy full stop," said Cllr Wilson, also chairman of the Community Association.
"I find it absolutely incredible that this has to be done to make sure congestion is kept down for just 20 minutes, and would probably cost me £1,000.
"We are a charity and we have been doing this for 25 years without any diversion signs and everybody has been quite happy, " he added.
Cllr Wilson said the legislation had "reduced" the Marlow carnival into a normal May type fair.
The new regulations came about because of the Traffic Management Act 2004 introduced on January 5.
It means Buckinghamshire County Council has to monitor traffic levels on A roads closer than before, when previously they could simply give events the go ahead if they didn't clash with others.
The county council said that the Marlow Procession was "unique" because in past times police had actually been exceeding their powers by stopping traffic as the procession walked along the A4155.
But if challenged by drivers, police said they couldn't actually stop them entering closed roads, and therefore a legal order was needed.
Tony Blackmore, team leader for traffic management at the county council, said: "There has to be proper signage and I'm guessing they the organisers can't get an agreement with contractors. We are trying to come to a compromise, it might mean there has to be a procession but it will involve a different route."
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