Thousands of Apprentice Boys, bandsmen, and supporters are expected to gather in the city centre for the 320th annual 'Shutting of the Gates' parade which will culminate with the burning of an effigy of Lundy at Bishop Street.
In recent years the Apprentice Boys have brought the parade, traditionally held on the second last Saturday of December, forward in an effort to keep disruption to pre-Christmas trade to a minimum.
Last year, a record number of businesses stayed open during the parade.
Chief Executive of Derry's City Centre Initiative, Sean Trainor said he was hopeful that trend would continue this year.
"We would hope to build on last year, with the parade coming to a close quickly and inconvenience to the city centre kept to a minimum. There is no reason to believe this will not be the case again this year."
Mr.Trainor said a series of meeting have been held over recent weeks involving the CCI, business leaders, traders, the PSNI and the Apprentice Boys.
The parade gets underway at 1130 in the Waterside, before making its way to Society Street and culminating in the burning of Lundy at 15.15 in Bishop Street.