The carnival, a decades-long tradition in Upper Makefield Township, typically raises about $25,000 for the volunteer fire department. Residents said the loss of the event will be felt by families across the area.
"Lot of kids are going to be heartbroken," said Markese Humphrey of Ewing, New Jersey.
For many, the carnival marked a highlight of the spring season. Jordan Ramsey of Newtown, Pennsylvania, said the event was something local kids grew up anticipating.
"We would go, middle school, high school, even younger than that. Our parents would drop us off - it was always something we would look forward to in the spring," Ramsey said.
The fire company said the cancellation stems from a policy enforced by the state Department of Natural Resources, which no longer allows carnivals on state park grounds.
According to the fire company president, the state notified them late last year that it would begin enforcing the policy, preventing the use of Washington Crossing State Park for the event.
In a statement posted to social media on Thursday, the fire company expressed frustration with the decision.
"We are disappointed by this decision, as the Carnival has been held on Park grounds since the 1980s. It was an event that was anticipated by many in the community, and proceeds from the event contributed significantly to our annual operating budget," the statement said.
Residents said the impact goes beyond lost entertainment, affecting the fire company's ability to raise funds.
"It's unfortunate for the fire company. If they're losing their fundraising abilities, it'd be sad to see it go if it doesn't come back," said Joseph Murphy of Newtown, Pennsylvania.
Bonnie Curran of Newtown said the carnival was a cherished family tradition.
"The rides, the crazy foods, all of it. It was always special to go as a family. It was something you looked forward to," she said.
The fire company said it has not been able to find another location within the township that can accommodate the carnival's rides, equipment and parking needs.
Fire officials said they are now exploring options for a replacement event and continue to brainstorm alternative ideas to support fundraising.
Action News has reached out to the state and is still waiting for a response.