Daly's IGA Koroit was due to replace the asphalt footpath directly outside the new store as it nears completion, but now will contribute $40,000 to kick-start plans for a new bluestone pavement.

Koroit received $800,000 for the streetscape works from the federal government this month, and Moyne Shire Council will use $260,000 of the grant to lay the pavement outside the store.

Moyne Shire mayor Daniel Meade said preliminary community feedback on the council's Koroit Streetscape Plan highlighted a preference of a bluestone footpath.

Cr Meade said the works were due to commence as soon as possible and be completed by the end of October, in line with the store opening.

Daly's IGA partner Michael Daly said starting the pavement in front of the store was a better use of the money than potentially ripping up asphalt in the near future.

"It's going to be tight, but I think it made sense," Mr Daly said.

"We are looking forward to it, the bluestone does look fantastic."

Mr Daly said workers were instaling internal fittings with plans for the new shop to open in November.

"As soon as it involves shipping or transportation, there are holds ups due to COVID," he said, anticipating potential delays.

Koroit and District Progress Association president Sam Rudolph welcomed action on the streetscape refreshment, and said commencing in front of the new store made sense.

"It's do it once, do it right; that mentality," Mr Rudolph said.

"There's been an influx of new properties, services are old and it's about time it gets a bit of love."

He said there were ongoing discussions with Powercor and other services about whether power lines on the street's southern side could go underground.

"If they stay on that side then the project could keep going ahead on the northern side," Mr Rudolph said.

The Koroit Streetscape Plan is still yet to be finalised, and Cr Meade said further bluestone paving was subject to discussions along with other elements in the plan.

About 200 people have submitted feedback on the plan with almost three quarters expressing a preference for bluestone paving.

Upgrades to the village green and powerlines going underground were also high priorities for those surveyed.

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