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With Game Update 54, city festivals, a new monthly special event, were implemented. This event will run from the 1st through the 7th of each month.

Each month the Far Seas Trading Company will choose one city, and set up a small festival outside that city's gates for a week-long event. After the week is over, they will pack up their wagons and disappear until the following month, when they will set up the festival outside a different city.

The festival will include:

One vendor with temporary clothing, so you can dress up for the festival
One general items vendor with permanent appearance clothing as well as many house items that will be available at every festival event
One vendor with city-specific house items, that can only be purchased when the festival is visiting that city
One food and drink vendor with some rather, um, odd, offerings
One quest NPC, offering 3 quests that reward tokens that can be spent at any festival event
One fortune teller. (Didn't your mother ever warn you about spending money on carnival fortune tellers? If you've ignored that warning, well, go ahead, throw your gold away on her!)
One city-specific glowie collection, that will spawn in the actual host city itself
A way to earn tokens in between festivals, so you can stockpile for shopping sprees!