The Koroit streetscape project has received a boost with Moyne Shire Council allocating $800,000 to the initiative.
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The funding comes from the pool of $5,435,806 distributed to Moyne from the federal government's Local Road and Community Infrastructure Program.
Councillors announced the breakdown of funding to projects in Moyne at their August meeting on Tuesday.
The Koroit and District Progress Association (KDPA) has made the streetscape project a major focus of its activities.
Association president Sam Rudolph said it was exciting to gain council support for the initial stages of the Commercial Road upgrade.
"The funding secures the commitment from council that the community of Koroit has been requesting," Mr Rudolph said.
"The project will not only improve the aesthetics of the town, it will also increase economic development, ensure safe pedestrian access, and in-still pride within the community.
"We look forward to continuing to work with council on this fantastic project as well as many more to come."
Both Cr James Purcell and Cr Daniel Meade thanked the federal member for Wannon, Dan Tehan, for pushing Moyne's case at the national level to secure the funding.
Plans for the streetscape work includes a new footpath surface in Commercial Road, underground power, new street furniture, town banners and an upgrade of the Village Green.
Moyne has committed a further $500,000 for the project across the financial years of 2022-23 and 2023-24.