Taking a well-earned break from a set in Derry's Verbal Arts Centre this week, musician George Murphy muses at the similarities between the Irish and Scottish tunes his band are performing.

"You'd be surprised," he says. "The songs are so alike in style and sentiment, with the Celtic aspect as the common link. Maybe it shows that the communities here aren't so different from each other either."

George is in the city with the interdenominational group, Tongues, Tones and Tapping, as part of the Maiden City Festival organised by the Apprentice Boys of Derry. Now in its eighth year, the festival aims to create a better understanding of Protestant traditions and ease tensions in the run-up to the Apprentice Boys' Relief of Derry parade.

Over the past seven days, Derry has played host to numerous events including storytelling sessions, music workshops and a highland fling. A contextual art exhibition is being held in the Playhouse art gallery, and last night saw a Siege Banquet with traditional Ulster Scots fare and song. According to festival co-ordinator Billy Moore, the events display the creativity and vitality within the Protestant community. "Many people think our culture is just flute bands on the street," he says. "It's much more than that. We've tried to show our diversity in the festival programme."

The annual Relief of Derry parade tomorrow commemorates the actions of 13 young apprentices who shut the city's gates against the forces of the Catholic King James in December 1688. During the long siege that ensued, at least half the population of Derry died from starvation, disease and injury. Finally, in August 1689, King William of Orange's army sailed into the port and relieved the city with food and ammunition.

Around 10,000 marchers and spectators are expected in the city centre, with some 130 bands taking part. Before the main parade, local amateur dramatic group the Crimson Players will perform a passion play depicting the last few hours before the relief. Norman Rossborough has written the script and is directing the pageant.

"A culture that doesn't rejuvenate peters out," he says. "Living history catches people's attention more than sitting in a classroom. When the spectators smell the black powder from the muskets they'll feel like they're really there."

Norman hopes that the pageant, and the entire festival, will give people an insight into the siege and why the Apprentice Boys choose to commemorate it. "Many people here think if you don't understand a culture you should attack it. This festival is all about diversity and co-existing."

Throughout the 1990s, clashes, rioting and petrol bombs frequently eclipsed the parade itself. Over the past few years, however, talks have been held between the Apprentice Boys and the Bogside Residents' Group to minimise friction. Since 2000, the Relief of Derry parade has passed without major incident and public figures have praised the negotiation process as a model of conflict resolution.

Despite the disturbances in Derry after this year's Orange Order march on July 12th, when seven police officers were injured, both sides are hopeful that tomorrow's parade will pass without violence. Following a meeting on Monday night, spokesman for the Bogside Residents' Group Donncha MacNiallis says that "neither side has any illusions. It will be difficult, but we hope Saturday will pass off as peacefully as possible."

While MacNiallis commends the Maiden City Festival for making a positive contribution to the city, he argues "a lot of people see the festival and the parade as separate. It would be better for all of us if we had more of a pageant and less of a parade on Saturday."

Many businesses along the parade route will be closed tomorrow, including Bookworm Community Bookshop and Cafe. The store is situated opposite the Apprentice Boys Memorial Hall, and closes every August on the day of the march. Co-owner Carmel Mullan provides two reasons for keeping the doors shut. "Firstly, it's very quiet because shoppers steer clear of the town, and secondly we don't know what's going to happen later in the day when people get drunk.

"It has definitely calmed down in recent years, but the violence on July 12th showed that you'll still get young fellows from both sides wanting to cause bother." Carmel adds, however, that bluegrass musicians performed outdoors near Bookworm as part of this year's Maiden City Festival, and "there was a great atmosphere and more people in our cafe than usual".

"It will be hard to change many people's opinions though," she says. "The underlying religious issues are still there."

The parade problem remains a contentious one in Derry, but organisers are optimistic that in the long-term the Maiden City Festival will create a friendlier environment for the climax of the week. Billy Moore states that he has received much positive feedback from local nationalists but concedes "there will always be conflict in all communities. The Maiden City Festival is a way of ostracising the people of violence," he says. "We're trying to promote better understanding so our culture can be accepted by the wider community."