Council spokesman Allan Reeder said strong winds this week tore the flag's material from their metal eyelets.

"It looks like strong winds and storm damage around Orange has damaged the eyelets that hold the new flags," he said.

"They have been taken down and will be repaired as soon as possible."

On Wednesday the green and yellow flags lay on the bottom of the flag poles behind the main structure on the intersection of the highway and the Northern Distributor Road.

The welcome sign had only just been completed before Christmas.

Mr Reeder said landscaping work around the sign was still needed to be completed.

"We are receiving positive feedback about it," he said.

Mr Reeder said the lighting system for the structure was designed to be able to change colours.

"The new solar-powered LED system comes with the option of changing colours [to suit] various campaigns and opportunities."

He also said a second welcome sign was planned for the western entrance to Orange on the Mitchell Highway.