The federal government has fully funded the works, which will cost $440,000, under a local roads and community infrastructure fund required to be used by June 30.

Moyne Shire Council began a master plan for Irvine Reserve in 2019 to give the community a recreational space away from popular tourist drawcards at the foreshore. It will now deliver the plan before midyear.

The works include a nature play space using natural materials such as sand, logs and rocks to give children an alternative to the foreshore park.

Works at the reserve will also feature new fencing, an enlarged field, multi-use sporting facilities, car parking, landscaping, walking trails and seating.

The council will remove an unsealed road to extend the open playing field, relocate cricket nets and provide new line marking on tennis courts for basketball, netball and soccer.

Peterborough Residents Group treasurer Graeme Murfett said the community was expecting the project to progress in stages.

But he said thanks to the grant money the council had committed to much more than previously planned.

"We are very pleased it is going ahead and we will have a facility more quickly than we would otherwise have," Mr Murfett said.

"There are a lot of kids around the place who want other sports, lots of cricket and soccer going on in the street, we wanted to give them an area they could do it safely and keep them happy."

Moyne Shire mayor Daniel Meade said the council was focused on investing in its communities through upgrades to open spaces and recreational facilities.

"Council recognises the importance of improving and maintaining our open spaces to meet the needs of the community, enhance the region and encourage more opportunities for social activities," he said.

The plan was one of a series the council has for small towns, also including Macarthur and Woorndoo, where there are visions to renew streetscapes and facilities.

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