The Woodford Folk Festival would get new permanent showers, road improvements and upgrades to camping areas, under a $4 million revamp promised by Labor.
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Deputy Premier Jackie Trad said the Palaszczuk government would provide $2 million towards infrastructure and amenities to re-energise Woodford, with another $1 million from Moreton Bay Regional Council and $1 million from Woodfordia Inc.
"Woodford has seen crowd numbers grow year-on-year, pushing this iconic site to the brink," Ms Trad said.
"The Palaszczuk government recognises the critical need to invest in new permanent shower and toilet facilities, wastewater treatment upgrades, camping and parking areas, and extra additional lighting and public safety upgrades to enhance the festival experience for day trippers and campers alike."
The project, in collaboration with the council and Woodfordia Inc, would also involve sealing 10 kilometres of internal roads to suppress dust.
"[It] can wreak absolute havoc on dry, hot days for asthmatics and turn into mud on rainy days," Ms Trad said.
Moreton Bay Regional Council mayor Allan Sutherland said Woodford was Australia's largest outdoor festival, and it brought millions of dollars into the area every year.
"Since the festival moved from Maleny to its current site at Woodfordia, council has observed a steady growth and meaningful economic development in areas of our region that need it most," he said.
Festival director Bill Hauritz said the investment would ensure the future viability and sustainability of the Woodford Folk Festival.
"Earlier this year, we had to announce a ceiling on our ticket sales for our 2017 event because the increases in crowd numbers have been placing extra stress on the site," he said.
Labor has already committed money to the project, but in the event of a change of government, the incoming government would have the power to cut it if they chose to do so.
The Woodford Folk Festival takes place over six days and nights every year from December 27 to New Year's Day, featuring a wide range of performance styles, musical genres and nationalities, with artists playing at more than 35 different venues on the festival's grounds.
Among the 380 acts at this year's festival are John Butler, Kate Miller-Heidke, Baker Boy and Lior, scientist Dr Karl and journalist Tracey Spicer.
Woodfordia is in the electorate of Glass House, which has a very slim margin of 0.9 per cent to the LNP incumbent Andrew Powell.
