The total costs of implementing stage one of the East Beach masterplan comes with a $1.7 million price tag, and Moyne Shire Council has already said it would chip in $450,000 towards the cost.

The works will include replacement of toilet and shower amenities, landscaping, creation of a large lawn area, two new barbecue shelters, seating and furniture as well as roadworks and a car park.

Labor Member for Western Victoria Gayle Tierney announced the funding to implement the northern section of the East Beach Masterplan.

Ms Tierney said Port Fairy was a popular tourist destination, and East Beach was one of its major features.

"Investments like this demonstrate how we are supporting the projects that matter while driving a much-needed economic boost across the state," she said.

"The new batch of projects in the regional infrastructure fund - round two will continue to deliver promising outcomes for regional and rural Victorian communities by accelerating jobs and business growth."

Mayor Ian Smith said the council was delighted with the $1.2 million commitment from the state government to implement the first stage of the masterplan which was developed in 2018 with significant input from the community.

Cr Smith said the improvements would add to the area's unique beauty and encourage greater use of East Beach for gatherings of locals and visitors.

"During consultation the community said the area needed to be safer for pedestrians, accessibility needed to be improved, the toilet facilities needed to upgraded and more passive recreation spaces were needed," he said.

"The masterplan council adopted reflected the community's desires for the area and now, thanks to this funding, we will be able to realise that vision as part of stage one - which will have long lasting benefits for the community.

"Council has been advocating for this project since 2019 and we thank the state government for making this commitment.

"We look forward to getting to work and delivering a revamp of East Beach that will encourage even more use of this iconic spot."

Cr Smith said with the project now fully funded, council would undertake final design and planning works. He said works would be based on the concept designs which featured natural timbers and stone.

Some civil works will be completed by council's own teams, with other works contracted out via tender.

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