Onchan commissioners say they'll talk to organisers of a Pride event over the number of people expected, after around 8,000 went to last year's celebration.
The board discussed the proposals at its last board meeting, and heard organisers were hoping for funding from the government's Domestic Event Fund.
Members said the event in Onchan Pleasure Park could bring a boost to local traders but were worried about the impact on nearby residents.
They asked for more information before discussing the proposals again next year.
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