The delegation members will then receive red envelopes - which contain a coin and messages of love, peace, kindness and happiness - before moving to a side tent area to view the costume parade.
Night Market manager Brigitte Nelson said the celebration was about bringing communities together.
"We've got a very vibrant Chinese community here in Rotorua and a lot of tourists come from there."
The Chinese New Year was a significant celebration and was celebrated by two billion people worldwide, she said.
The whole of the new Hinemoa block will be devoted to the celebration and the Maori community would help with the dragon dance, she said. There will be coverage of the event by World TV Limited, Asia's biggest broadcasting company here.
"We have had so much feedback. There is so much happening on the night. It really will be a family night."
The event will include animal face painting, calligraphy, Chinese folk dances, food, dragon dances, lantern displaysand workshop, red envelope gifting, a tea ceremony and a tai chi demonstration.
- The celebration will take place between 5pm and 8pm at the Night Market, which is on Tutanekai St between Hinemoa and Haupapa Sts.