The $400,000 third stage of the Ararat Streetscape Project, comprising $300,000 from the State Government Small Town Development Fund and a $100,000 contribution by Ararat Rural City Council, will commence immediately.

Member for Ripon Joe Helper made the announcement on Tuesday at The Vines Cafe, which is one of many businesses to benefit in the third stage of streetscape works.

''This is a terrific project that has added enormously to the amenity and visual appeal of Ararat's streetscape while creating new economic and employment opportunities,'' he said.

''Stage three will see works undertaken in Barkly Street, on the north side from Vincent Street to Ingor Street and on the south side from the NAB lane towards Taylor Street.

''Works will include upgrading the footpath with bluestone paving and asphalting, new street furniture and landscape works.''

The only remaining section of Barkly Street in the CBD to receive an as yet unconfirmed upgrade will be the area from the Ararat Post Office to the Ararat Court House.

Mr Helper said the State Labor Government had previously provided $330,000 funding towards stage one and two of the project.

Mr Helper said completing stage one and two of the Ararat streetscape project had created an estimated 12 new jobs.

''At a time of economic uncertainty, this project has helped to secure existing jobs in Ararat while providing new retail and employment opportunities,'' he said.

''The first two stages encouraged outdoor dining in the town and saw high rates of tenancy in the upgraded areas,'' he said.

The Ararat Regional Development Board first came to council in 1993 with an idea to improve Ararat's streetscape in a bid to boost the flagging economy of Ararat.

Mayor Cr Gwenda Allgood recalled the meeting.

''All that seems a long time ago, and it does take time to turn the wheel,'' she said.