The Daylesford Streetscape Revitalisation Strategy was endorsed by Hepburn Shire Council last night, paving the way for a new-look Vincent Street.
Initiatives under the strategy include planting more trees, revitalising the laneways, providing safer pedestrian crossings and reinstating an historic horse trough in Burke Square.
Some parking spaces will be lost to plant six to 10 trees in the centre of the road.
Councillor Jonathan Barrell said the people of Daylesford wanted to see local amenity improved.
However, councillor Bill McClenaghan said the proposal came without an economic impact statement about the effect on traders.