The federal government allocated Northern Grampians Shire Council $50,000 in round 3 of the Building Better Regions Fund.

Council's successful submission was to fund a strategic plan for the Stawell Gateway Enhancement Project.

The project will address how to boost visitors to Stawell and how to continue to grow the town's business.

"Given Stawell is the gateway to the Grampians, this grant will help us create a plan to improve and enhance the entry into Stawell, and hopefully draw traffic into the CBD to improve economic development," Northern Grampians Shire Council mayor Kevin Erwin said.

The project has long been one on council's priority list, with the impending Western Highway duplication in coming years to have an impact on business in Stawell. 

Cr Erwin said the funding will allow council to plan for ways to create a clear entry point to Stawell when that duplication occurs.

"It will give us a chance to get the views of the community. We have had a lot of comments we don't have the most enhance entry to the town so this is an opportunity to work out how we can improve that," he said.

"It has been raised with a lot of councils over time, but now we have the means to work on a plan. The highway itself is the responsibility of VicRoads but we can look at what we can do to prepare."

Cr Erwin said an improved gateway would also make the whole region "more inviting".

"We are the gateway to the Grampians, so we have the chance to increase numbers to Halls Gap and the Grampians too," he said.

The funding comes at a good time for Stawell and council, with industries in the region such as Stawell Gold Mines, Frewstal, Bulgana Green Power Hub and Nectar Farms flourishing or with strong prospects.

It also comes after the Main Street streetscape was completed late last year.

"The timing is right for this funding and to start planning," Cr Erwin said.

The project will involve consultation with major stakeholders including presentation of analysis and implementation options suitable for public consultation.

The project will also create design concepts and set out a strategy that includes immediate, intermediate and long term options.

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