Mars Hill has the Mountain Heritage Festival and the Lamar Lunsford Festival, both of which bring out bands, food vendors, arts and crafts people and more "down home" entertainment, including cloggers. Hot Springs, which isn't my home town but I do go there when I am home, has Trailfest in April which is a little different. Hot Springs is very toursity, and is an official stop on the Appalachain Trail. April is around the time the hikers and hippies make it to Hot Springs, so they hold a festival as well as special deals on the bed and breakfasts and the spa. There's also crazy live music, and Thai chicken with peanut sauce.

Chapel Hill as a town doesn't have much that I know of, but there's always some kind of traditional thing on campus.