In September, the state government pledged $250,000 to all rural city councils as part of its Outdoor Eating and Entertainment Package program.

Ararat Rural City Council grant will fund the installation of festoon lights, permanent decorative dividers outside cafes, restaurants and hotels, and extra outdoor powerpoints along Barkly Street. These upgrades expected to be completed by the end of June 2021.

The Barkly Bistro Bar and Accommodation owner Rob Martin said he believed the revamp would greatly expand what Barkly Street businesses could offer.

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"I think it's going to be a really positive thing, not only for our business but for Barkly Street and Ararat," he said.

"It's going to encourage people to dine outdoors; it's going to make alfresco dining a lot more attractive. I think it's going to enhance how Ararat presents itself.

"The certainly has been an increase in people around from outside of the district and I think this is going to add some real vibrancy to the street."

Mr Martin said the recent circuit breaker lockdown announced on Thursday, May 27, had reaffirmed the benefits of outdoor dining.

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"From a health perspective, it's fantastic. It's a really good initiative," he said.

"It's part of the evolution of hospitality in Ararat. We're all moving forward. The whole town is being more progressive, and I think that's the message it will convey to visitors, that we are vibrant and we are offering something that is quite unique in the district."

AF Gasons has been working closely with Council creating a design for the divider screens.

Ararat Rural City Council chief executive Dr Tim Harrison said the upgrades would be consistent with the rest of the streetscape.

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"Several models were considered before settling on the final design of the dividers, taking into consideration the Art Deco influence of a number of the iconic buildings along Barkly Street," he said.

"We've had positive feedback from businesses both in hospitality and retail saying the banners, custom dividers and festoon lighting will improve the overall look and feel down the main street.

"Whether driving through in daytime or at night, we wanted to create a feeling of ambience that enticed tourists to come back and explore our region time and time again."

Banner flags having been installed along Barkly Street between the Shell Service Station and Baker's Brew.

Some brackets and supporting wires have also been installed to prepare for the installation of low-energy, LED festoon lights.

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