Goulburn Mulwaree Council is the latest local government forced to cancel plans for drag queens to meet up with children after complaints from the public.

The council in NSW southern tablelands announced this week that a Rainbow Story Time planned for June had been scrapped.

The council had invited "Betty Confetti," who organises the Bathurst gay Mardi gras and is advertised as “the campest drag queen ever to set foot outside of Sydney”, to perform for children aged between three and eight years.

But council chief executive officer Aaron Johansson complained that council staff had been “subjected to direct and indirect intimidating behaviour from members of the community” over the event.

“As I am unable to guarantee the physical and psychosocial safety of Council’s employees the event has been cancelled,” he said.

“Threats received have been referred to the relevant authorities.”

Betty Confetti told the ABC the inability to perform for children was “sad”.

“The point of a drag story time is to be visible and to be openly a proud person of the LGBQTI community ... living their truth.

"For it to be cancelled, especially in a regional area where there isn't much representation, it is very sad.”