Spalding Flower Parade ended when two local authorities said they could no longer fund it.
Organisers hope Springfields Festival and Tulipmania will mark its tulip-growing past and other produce.
They said it was important to keep in touch with its heritage.
Springfields Horticultural Society, the main organiser of the annual flower parade, said the new smaller event in May at Springfields Festival Garden was created not to loose Spalding and South Holland's tulip growing heritage, the parade floats and community engagement.
The festival will also feature music, dance, a craft fair, train rides, a children's fun-fair and a classic car show.
David Norton, from the society, said: "We need to look forward and look at a festival that will celebrate the modern South Lincolnshire based around food, flowers and the general produce we make in the area and not just tulips.
"We're hoping to keep in touch with our heritage... it's important for people to know how Spalding and South Holland was such an important tulip and now a daffodils growing area."
He hopes two or three static floats will be re-created and decorated with tulips to keep the link to the flower parade.
A new festival will be held to celebrate a Lincolnshire town's flower heritage to replace a parade which ended after 50 years last spring.