Initiated by Yayasan Pembangunan Sanur (The Sanur Development Foundation) Sanur Village Festival (SVF) is formed to revive the business climate at Sanur area particularly at tourism sector. The first celebration was held successfully for three days from 25 – 27 August 2006, featuring various attractive programs including art and culture, music, sport competitions, food festival, cultural parade and more. The success of the first event was certainly open the eyes of local governments for support, especially from the mayor of Denpasar municipality and the Bali Tourism Authority who encouraged the committee to keep SVF in the annual events calendar. And later that year SVF was listed in the 100 events under the Visit Indonesia Year campaign by Ministry of Tourism and Culture of Indonesia.

Sanur is the only tourist destination under the Denpasar municipality and was officially regarded as the first tourist object in Bali. The rapid development of tourism industry at the other side of the island such as Kuta and Nusa Dua, positioned Sanur in a very tight competition attracting tourists. In particular with the economic and political crisis hit the island of Bali, caused a global downturn make Sanur even more anguish than ever. And that became the primary reason why Sanur Village Festival is being organized along with some other objectives such as: