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The Waterloo Busker Carnival began in 1988 as a project to revitalize the Uptown core. The original committee was the Waterloo Chamber of Commerce who hoped to lure people to the Uptown area for some fun and to have an opportunity to see what was available in the city center.

After the initial success of the Carnival in 1988, the Chamber decided to pass the running of the Carnival onto a volunteer committee along with two City of Waterloo recreation representatives.