Daylesford – once labelled “the world’s funkiest town” by the British Airways inflight magazine – has a New Age, alternative atmosphere, with a large gay community. The town has several gay-friendly guesthouses, and on the second weekend in March it is the venue for ChillOut, Australia’s largest rural gay and lesbian festival, featuring a street parade, music and cabaret, dance parties and a carnival at Victoria Park (chilloutfestival.com.au).

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