Moonfest has been cancelled after local police banned Babyshambles from appearing at the festival.
Organisers of the Wiltshire event, which was due to take place between 29-31 August, have pulled the plug after police fears about fans fighting during the band's set.
Pete Doherty and Co were set to headline the brand new festival, but North Wiltshire Magistrates ordered festival organisers to cancel any appearance of the band using Section 160 of the Licensing Act (2003).
Festival organiser, John Green, said the event was cancelled "due to the ramifications presented to us by the actions of the police."
However the Wiltshire Constabulary confirmed they didn't have an issue with the band. Superintendent Paul Williams said: "The issue is not the act itself, it is the profile of fans that follow the act. Wiltshire Police do not have an issue with Pete Doherty or Babyshambles."
Speaking to BBC News about the decision, Babyshambles manager Andy Boyd has said the band have offered to play a free gig elsewhere for those with ticket. He said: "We might even do it at Pete's house in a big barn. We're definitely going to honour those tickets somehow, but as far as the festival goes our hands are tied.
"Babyshambles have played about 25 festivals this year. They've been playing festivals all summer, what's the difference with this one?"
Despite a capacity of 5,000, Moonfest had only managed to shift 150 tickets.