The carnival aims to celebrate the music, culture, food and art of South American countries and will see dancers take to the stage outside the Corn Exchange from 10am until 4pm.
There'll be a chance to sample some of the dishes from the region and pubs and cafes in the town centre will also be offering food with a Latin American twist.
DJ and compere Alison Smith from Newbury dance group, Candente Salsa will be hosting Salsa dance lessons for those who want to get into the beat, while in the market Peruvian silver jewellery, Argentinean wood carving and authentic gifts from the region will be on sale. Mask makers from the Watermill theatre and face painters will also be getting in on the act and children are invited to make carnival costumes in the library between 10.30 and 2pm in preparation for taking part in a parade around the Market Place at 3pm.