The Compass Cup, which has been held at the Mount Compass oval in January for the last 46 years, will not be staged in 2020.
The 2019 event was the last Compass Cup.
Touted as 'Australia's Only Cow Race', the Compass Cup was run and hosted by dedicated volunteers and local community groups.
The demise of the event was not due to the lack of support from Alexandrina Council.
Alexandrina Council Mayor Keith Parkes said he was "really upset" the Compass Cup will not be held anymore.
"Over 46 years the event has provided thousands and thousands of dollars for community groups and provided fun and entertainment to families from all over Australia," Mr Parkes said.
"Alexandrina Council has always supported this event and would have continued to do so. Approximately $3000 was earmarked for 2020 by council. I am disappointed for the community, as it means so much.
"This is a massive loss to the community and a huge blow."
Ben McHugh has been on the Compass Cup committee for the past 15 years and said the reasons for the closing down of the event was due to a mood for change.
"We received opposition from our local council member and there was a movement among some of the Compass Cup committee members to move in a different direction. There was opposition to the way the cows were being treated and even the petting zoo," Mr McHugh said.
"The Compass Cup in the format it has been for 46 years, has put Mount Compass on the map. It is not a town you just drive through, it is the town that hosted 'Australia's Only Cow Race'. It attracted visitors from Japan, China, all because of its quirkiness and how unique it was."
Mr Parkes said he was concerned that there was a community perception council no longer wanted to support the event.
"This is totally wrong. We have never as a council resolved to not support the Compass Cup," Mr Parkes said.
The 2019 Compass Cup raised approximately $20,000 for the Mount Compass community and does not include the fundraising efforts from the event by sporting clubs such as Mount Compass football, netball, soccer, cricket and tennis clubs.
Mr McHugh said the funds raised went to all sectors of the Mount Compass community and much of the criticism was mis-informed.
"The animals came from local farms and were treated well. The cows are our livelihood and we are very much a dairy community. The cows come first all the time," Mr McHugh said.
"This enormously successful event provided a unique opportunity for our local sporting clubs, associations and groups to raise funds for various community projects, infrastructure, equipment and activities, while encouraging and strengthening community spirit."
Compass Cup spokesperson said over the years, the Compass Cup has brought thousands of visitors to the Fleurieu Peninsula, showcasing all the region has to offer and are currently looking at alternative fundraising initiatives for Mount Compass.
"We will plan to release more information in the next few weeks on an alternative event to support our community. We have had an amazing time providing entertainment for friends and families, as well as exposing people from other cultures to our Aussie sense of humour," spokesperson said.
"We, the past and present committee members, acknowledge and thank all those who have supported the annual Compass Cup over the past 46 years, through sponsorship, by cheering on the participants and enjoying the show, by relaxing with some good food and a beer, or browsing the market stalls and farm displays.
"Thank you, it has been a wild ride."