Katy Nutcracker Exchange & Katy Christmas Tree Lighting is a festive holiday day at Historic Town Square in Katy, just outside Houston. Shop local vendors at the Nutcracker Exchange, snap a photo with Santa, and stay for the tree lighting that officially kicks off the holiday season. It's free, and it's a cozy, community-minded way to get into the Christmas spirit. Parking nearby is limited, so arrive early and bring your friends and family.