Minster for Regional Development, Jaala Pulford, met with Ararat Rural City Council officials last week and toured the Ararat Town Hall.

The major upgrade will transform the existing precinct located in the Ararat Town Hall - which houses the Ararat Regional Art Gallery and the Ararat Performing Arts Centre - into a modern focal point for the region's arts activities and exhibitions.

The project will refurbish and expand the Victorian-era built Ararat Town Hall, including the award-winning 1978 extension overseen by renowned architect Graeme Gunn.

The redevelopment will deliver greater and more flexible exhibition, performance and storage spaces, a facility capable of exhibiting the Gallery's permanent collection which is currently mostly in storage, and an enhanced front entrance to improve access for people of all abilities.

The project will also include improvements to the appearance of the facade, foyer and entry, enhancement of public amenities such as toilets, box office, bar, general congregation spaces and car parking, and new cafe services.

Ararat Rural City Council's director of council services Neil Manning said the last major upgrade was in about 1978.

"Every 25 to 30 years you really need to do something to keep it current," he said.

"This one's been about doing what we can for a reasonable price but also fulfilling the requirements of Arts Victoria."

Mr Manning said the plans were developed in consultation with Arts Victoria, which recommended that a cafe be included as part of the overall development.

The cafe will be placed at the rear of the centre facing High Street, through which patrons will be able to enter the gallery, although the main entrance to the gallery and performing arts centre will be through the front entrance of the town hall with a new reception area to service both.

The public toilet block in Vincent Street will be removed and toilets built against the gallery wall, both external for the travelling public and and internal for cafe patrons. The toilet facilities in the foyer of the performing arts centre will also be removed and relocated along with other major works in this area of the building.

"The Andrews Labor Government is getting this project up and running as soon as possible, because regional jobs matter," Ms Pulford said.

"When complete, the gallery can permanently display its entire collection of textile and fibre art, which is one of the largest and most extensive in Australia."

"Projects like these bring jobs, growth and investment to our regional cities, attracting people from around the country to visit."

The project is being funded in partnership with Ararat Rural City Council through the Andrews Labor Government's new $500 million Regional Jobs and Infrastructure Fund.

The total cost of the project is estimated at $5.290 million of which Council will contribute $1.3 million and the State Government $3.7.

Mr Manning said Council has already budgeted for a $1 million loan to assist with funding the project and will also contribute $200,000 from reserves, as well as some operational money to help meet the balance of the project cost, which has already been set aside for development of ramp and toilet components.

With works long over due on the Ararat Town Hall and the gallery and performing arts centre it houses, Mr Manning said the heritage building needed to be preserved but also regularly used by the public.

"Heritage buildings need to have a contemporary use or there is no reason to keep them," Mr Manning said.

"This is one of our icons and it can't be lost, so we have to either keep it in good order or basically can fall into disrepair if we're not careful."