Elton first met Mayall at the University of Manchester, before they went on to collaborate on The Young Ones, Blackadder, and Filthy Rich and Catflap.
"Rik had an essential star quality which was kind of unique", said Elton. "I've been fortunate enough to work with some great talent.
"None have had the quality Rik had."
The Rik Mayall Comedy Festival, which begins on Saturday and runs for eight days, will see stand-up from well-known figures such as Greg Davies, Helen Lederer and Shaparak Khorsandi as well as less-established comedians, alongside music, magic and spoken word events.
Its epicentre will be the town's Norbury Theatre, where Mayall first performed as a child in a production of Waiting for Godot.
"Everyone in the town is so pleased with what we're doing," said festival director Stuart Panrucker.
"I think it's really given everyone a sense of ownership of Rik and... [the chance to] say he's one of ours and give us something to be proud of."
Mayall went on to star in the political satire The New Statesman, as the Thatcherite MP Alan B'stard, and as perennial loser Richard Richard in Bottom, which he created and wrote with another university friend, Ade Edmondson.
Many are still repeated on television to this day.
"I think Rik's comedy is timeless," said producer and writer John Lloyd, who worked on Blackadder. "It's unique - there's nobody I can think of who's even close to being like him.
"Everything Rik did was so full of charisma. It was like magic.
"There was an aura about him."
The festival will give Mayall's prolific output the chance to find a new legion of fans, added Elton.
"Obviously lots of people don't need alerting to his brilliance, but they can be reminded," he said. "And perhaps some new people can discover it."
In a statement, Mayall's family lent their support to the event.
"We are really touched that Droitwich Spa has chosen to honour Rik with a comedy festival," they said. "His mum and dad would have been so proud and especially pleased that the Norbury Theatre features prominently.
"Spending a week laughing is the perfect way to remember Rik."
The Rik Mayall Comedy Festival runs in Droitwich Spa between 31 May and 7June.