In its 2020-21 budget, Moyne Shire Council has allocated $30,000 from its capital works program for design works for a new skate park.

Council has submitted a funding application to Sport and Recreation Victoria to help round out funding for the project.

Locating a new site for the skate park will also be part of the design works.

Located off Campbell Street and next to Port Fairy Consolidated Primary School, the skate park has received criticism for its location and its outdated facilities.

The negative lens on the skate park has been heightened due to the comparisons with the Koroit Skate Park, which has become a community hub since opening in 2017.

Moyne Shire Council has continued to grew the site, adding half-court basketball and netball facilities, seating, a shelter and now a path and road configuration to improve safety in the area.

Moyne councillor Colin Ryan, who played a key role in advocating for the Koroit Skate Park, said he was excited to see what could be done in Port Fairy.

"As can be seen in Koroit, if we do things right we can have fantastic results," Cr Ryan said.

"Going back about six years, there was community push back in Koroit for a skate park.

"But the youth of the town stood up and told us they wanted a skate park and council was happy to support.

"Council has invested heavily in funding and time and the area is now a great asset for the Koroit community.

"This is a model we can now use when looking at what needs to happen in Port Fairy.

"The Koroit model shows what can be done."

Cr Ryan said the location of the Port Fairy skate park was an issue.

He said the park was built on the back blocks and needed a more central location.

Port Fairy Skate Park has a three star rating on the skateboard.com website, Koroit's rating is three and a half.