Identified within the Halls Gap Action Plan as a project of crucial importance, the proposed bridge will be developed over Stoney Creek and join Grampians Road with Heath Street in Halls Gap.

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The Victorian Government informed the council of the successful grant application late last week, with funding coming from the government's Investment Fast-Track Fund (IFF).

Mayor Murray Emerson said the bridge was a vital project for the council.

"The Heath Street Bridge has been on the to-do lists of both the council and the Halls Gap community for some time now," he said.

"We are excited to be able to take our first steps toward making this bridge a reality. The bridge will reinvigorate commerce in Halls Gap and contribute to the growth of the tourism industry for Victoria.

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"We are grateful to the Victorian Government for their foresight in funding activities that mobilise strategic investment projects to improve the liveability of rural Victorians."

The Health Street Bridge development is considered critical infrastructure by the Halls Gap community.

It is set to transform the visitor experience by redirecting traffic congestion away from the village's centre and increasing capacity for the additional 20,200 walkers expected to use the Grampians Peaks Trail to access the trailhead from Halls Gap safely.

The council have also contributed $125,000 toward the works to enable the completion of pre-construction activities necessary to make the Heath Street Bridge investment ready.

Works will include a cadastral and engineering survey, geotechnical investigations, pavement investigations and design, environmental investigations, and structural design, including testing and documentation.

Once pre-construction planning and detailed design is complete, Northern Grampians Shire Council can pursue further funding and investment for the construction of the Heath Street Bridge from the State and Federal Governments.