Pocklington Town Council posted the update on Facebook today after previous warnings about weather conditions.
The council posted that due to the yellow weather warning and electrical storm, the entertainment provider had advised them that they could not operate in these conditions.
"Regrettably" the council were "unable to set up the Street Party today".
The post went on to say that "many of the local businesses will remain open for indoor dining/drinking so please come out and support them".
There were strong reactions on the Pocklington Facebook page from residents frustrated with the cancellation with some calling for a rescheduled date.
Despite the cancellation of the party, Geoff Sheasby made his final appearance as Pocklington's Town Crier after 21 years of service.
Many local residents have wished him a happy retirement.
Happy retirement Geoff, from West Wolds Radio