Clubs from Sydney and regional New South Wales will race for honours over 500 metres in a test of fitness and endurance.

"The first two races have seen some fantastic results from NSW clubs," said Steven Davidson, President of Dragon Boats NSW.

"Many clubs have significantly stepped up their training efforts, which have led to exciting finishes across all the categories. This weekend's racing at Penrith will be the last regatta before Christmas and an opportunity for teams to flex their muscles before the Central Coast regatta at Tacoma in January and Chinese New Year racing at Darling Harbour in February."

Clubs will compete in races for mixed, women's and opens' categories. Racing starts at 8am and spectators are invited to visit the home of Olympic water sports to see the spectacle of dragon boats on the water.