Dahi Handi is a very famous festival organised in the cities of Maharashtra and Goa. Dahi Handi is celebrated on the next day of Krishna Janmashtami. Krishna Janmashtami is also known as Gokulashtami. Handi (earthen pots) is used for keeping the milk products like Curd, butter, milk, etc.
Dahi Handi celebration showcases the kind of life Lord Krishna used to live. During childhood, Lord Krishna was very fond of the curd and the butter. While growing up the fondness of curd and the butter increased and young Krishna became notorious for stealing it.
Related
Happy Janmashtami 2022 Wishes, Images & Status
Janmashtami 2022 Date, History, Significance & How to Celebrate
Significance of Dahi Handi

Krishna used to steal Butter and curd from his neighbourhood so the females started hanging the pots to the ceiling so that little Krishna could not steal it. The idea was to take advantage of the short height of little Krishna and His friends and keep Dahi Handis out of reach of small hands.

Even this idea of the ladies did not work out and Krishna got the idea of forming a human pyramid. With the help of his troops young Krishna used to make a human pyramid and used it as a ladder to climb up and reach the Handi. Since then it has become part of Indian traditions. Every year during Janmashtami young Boys in troops celebrate Dahi Handi.
How Dahi handi is celebrated these days

These days several competitions are organised in different parts of the country and different troops participate in the competition. These days Handi is kept several floors high at the open ground or at any street.
Women also play the role of female cowherds from the tale of Lord Krishna and stop the troops from creating a human pyramid by throwing the water or colours. In Mumbai, Dahi Handi has emerged as a very competitive sport.
Several teams participate every year in the event and the winners get several prizes and pandals also invite Famous celebrities to promote the event. In recent years the prize money has reached one crore which is equivalent to 10 million of Indian Rupees.
And all the troops chant “Govinda Aala Re.”
Dahi Handi 2022

Dahi Handi is celebrated a day after Krishna Janmashtami and this year the Krishna Janmashtami falls on 18 August so the celebration of Dahi Handi will be observed on 19th August.
And this year Chief Minister of Maharashtra Eknath Singh has declared a public holiday across the state for Dahi Handi.