Eight-piece band Eagle and the Worm will headline this year's annual festival, which organisers say will bring together local live acts and nationally acclaimed upcoming artists.

Co-director Rob Jones said smaller venues scattered around the historic town would create a unique and intimate experience. 

He said it was expected up to 500 people would attend the event. 

"Our main point of difference from larger festivals in bigger cities is the opportunity to showcase the whole town and use multiple venues in the heart of town," he said. 

"The Mechanics Institute will be the biggest stage, with gigs also at the stock room at the art gallery and a stage outside on the grassed area, as well as in pubs and cafes. 

"This encourages people to take in the whole town and go from venue to venue."

Cash Savage and The Last Drinks, Pony Face, Suzannah Espie, Raised by Eagles, Ben Mason, Yeo and James Kenyon will be among the acts gracing the multiple stages from February 28 to March 2. 

And while the festival is only in its infancy, with only two shows previously, Mr Jones said it was already attracting greater interest. 

"This year we've been able to secure bigger profile bands on the lineup and we're offering camping at the Kyneton Showgrounds," he said. 

"We want to not only be able to offer a great festival for people who live in small towns, but promote the town to other people as well."

Headline act Eagle and the Worm is expected to bring their mix of southern-rock, lounge and '60s pop when they play on Friday, February 28 at Kyneton Mechanics Hall. 

Another band bringing their well-known stage presence to Kyneton is Cash Savage and The Last Drinks, taking to the stage on Saturday, March 1. 

The show follows the 2013 release of The Hypnotiser, which features Cash's gothic country blues. 

Castlemaine's own D.D. Dumbo will also grace the stage with his self-described "experimental blues loop pop". 

Tickets are available at www.kynetonmusicfestival.com.au; $65 for weekend pass, or day passes Friday $30, Saturday $40 and Sunday $30. 

There will be 45 tent spaces available on Friday February, 28 and Saturday, March 1, with a community barbecue on Sunday, March 2.

Campsites are $40 for the weekend with a maximum of two people per site. 

All proceeds of the camping initiative will go directly to the Kyneton athletics club, cricket club, football club and scouts.