Coleraine District No.2 LOL, who were hosting the annual 12th July celebrations in 2006, decided to explore the idea of developing a community festival in the week leading up to the 'Twelfth'. Coleraine Festival Committee was formed with a remit of planning a range of events and securing funding to implement the planned programme.

Events organised in 2006, ranged from a junior 5-a-side football competition, It's-A-Knockout for adults, an Orange historical exhibition, the Ulster Scots Experience entertaining shoppers in the town centre, an amazing motorcycle stunt display through to a gala carnival parade preceding the main demonstration. The festival proved very successful and popular with locals and visitors to the area.

The festival committee were soon hard at work planning for 2007 and while retaining some elements from 2006 several new events were introduced, including Lambeg drumming demonstrations, a Battle of the Bands competition, a children's fancy-dress parade, a historical re-enactment and a fireworks display.

By 2008 the festival was firmly established in the local events calendar and Coleraine Festival Committee worked with Macosquin District LOL, who was hosting the 12th of July celebrations, to organize the week long festival in the lead up to the Twelfth. The programme was again adapted to provide an educational and fun-filled week with something for all ages.

The historic city of Londonderry was the venue for the 12th of July celebrations in 2009 and as the 400th anniversary of the Plantation of Ulster approached the festival committee decided to introduce more events looking at the history of Coleraine. This theme was further developed in 2010 and again proved to be a resounding success.

The festival continues to grow every year with the organizers valuing all comments and suggestions from the community.