Minister for Regional Development Mary-Anne Thomas visited St Arnaud to make the announcement, which was targeted at attracting tourists to regional areas after the effects of COVID lockdowns.

Stawell Grampians Gate Caravan Park will be a beneficiary with $185,000 allocated from the state government's Regional Jobs and Infrastructure Fund.

The funding has been provided to target improve amenities and create a new recreation room for visitors to the Stawell Grampians Gate Caravan Park.

Northern Grampians Shire Council mayor Cr Murray Emerson said the funding came at a critical time for the shire.

"It is wonderful to be able to welcome Ms Thomas to our shire and we are very thankful to the Victorian Government for financing these upgrades to our caravan parks," Cr Emerson said.

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"Our towns and tourism operators have endured a significant downturn in tourist numbers and local spending over the course of the pandemic due to continual lockdowns restricting visitors to our region."

The St Arnaud Caravan Park will also benefit from the funding, with $270,000 allocated for major improvements.

The following areas are targets for the upgrades:

Cr Emerson said the funding for St Arnaud was particularly important for getting tourists back to the region.

"These upgrades will improve the experience for our caravanning and camping tourists and hopefully encourage them to stay longer, spread the news to their friends and to return again to our getaway gems in the Wimmera region," he said.

"St Arnaud will always be a popular destination for botanical and history buffs, gold fossickers and now thanks to the mind blowing realism of local artist Kyle Torney's murals, a legion of public art enthusiasts."

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This funding was part of more a $2.8 millon investment in caravan park upgrades across the Wimmera and Southern Mallee regions.

The caravan park is the sole park situated within St Arnaud township, sitting on crown land owned by Department of Environment Land Water and Planning, with the Council leasing it to the caravan park operators.

Minister Thomas said this funding would help local councils revitalise small towns as they recover from the pandemic by creating more jobs and improving tourism and community infrastructure.

"This funding for accommodation at the gateway to the Silo Art Trail will have a huge flow on-effect for regional businesses - allowing more tourists to stop and stay in our small towns and providing a real boost to local economies," Ms Thomas said.

In January 2021, it was announced the Stawell Grampians Gate Caravan Park will become one of many regional parks around the state to receive a funding boost as part of the state government's $105 million Great Outdoors program.

The exact amount of funding allocated was undecided at the time, but the park's amenities were in the firing line for an upgrade.

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