Moss Vale Evening Country Women's Association members created wraps for seven of the plane trees which line Argyle Street in Leighton Gardens.
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CWA members crocheted and knitted lengths of yarn, which were sewn together and embellished ready for wrapping the trees.
"We were delighted that students from Moss Vale High, Moss Vale Public and St Paul's Primary were happy to make masses of wonderful pom poms, which are hanging in the trees and also been sewn on the wraps," president Jennifer Bowe said.
CWA members were also helped friends and family, including grandchildren.
The act is called yarn bombing, a type of street art employing colourful displays of yarn and textured items.
Working in partnership with Wingecarribee Shire Council, branch members have been knitting, crocheting and sewing up the wraps for weeks.
"We were very pleased with the response from visitors and locals this morning when we were setting up our display, with lots of smiles, toots from cars, and waves from Mums, Dads and children," Jennifer Bowe said.
"Being aware of how we all use the planet's resources, we used lots of scrappy pieces of yarn - the leftover bits that wouldn't normally been used.
"Searching the op shops, and the stashes of friends and family, along with resource recycle shop for any interesting pieces - all good fun and saving landfill.
"We are very happy to lift the spirits of our community especially with the news today - our installation is our way of saying thanks to our local community for their support of our Moss Vale Evening CWA branch."