The Queen of the parade

Leading the way were a group of lesbians riding motorcycles, calling themselves "Dykes on Bikes".

The lead float, titled Behind the Pink Picket Fence, highlighted families with gay and lesbian parents.

It carried the message that gay men and women should be recognised as equals with traditional parents.

Australia does not allow gay couples to marry or adopt children.

The community has been angered by comments by the country's conservative Prime Minister, John Howard, that gay and lesbian families were not as good as traditional couples.

Shock value

This year's festival has attracted marchers from across the world, including the United States, Canada, Tonga and Thailand.

A musician from Papua New Guinea, who has outraged members of his tribe by declaring his homosexuality, was among the participants.

The BBC's Red Harrison in Sydney says much of the parade was intended to shock.

There were men dressed as nuns calling themselves "The Sisters of Perpetual Indulgence", representatives of the police force and army, men and women wearing expensive, extravagant and outlandish costumes, and some wearing not very much at all.

Mardi Gras has become one of Sydney's most lucrative cultural events and attracts sponsorship from some of the country's largest business houses.

For the first time, the Governor of New South Wales has agreed to become the patron of the gay and lesbian support service.