The town's old United petrol station will take on new life as a marketing office, museum, creative workshop and exhibition space for the Beaufort Progress Association and Rainbow Arts and Culture Foundation.

Beaufort Progress Association secretary Sarah Beaumont said the refurbishment would be a symbol of broader plans to strengthen Beaufort as a 'destination town' before the highway bypass is complete.

READ MORE: RRV released preferred route for Beaufort Bypass, an 11km route to the north of town

"This is part of a bigger story for more marketing for activities and events in Beaufort," she said.

The site on the Western Highway has been left vacant for almost 10 years since the petrol station closed.

See the inside of the run down service station that is set to be transformed.

Beaufort Progress Association president Liza Robinson said the group had received a positive response from community members since the project was announced last month.

"It has been a bone of contention with residents because it is such an ugly space. Everyone is so excited," she said.

The building will be painted in traditional 1950s red and white service station colours and called Servo@23.

It will serve as a marketing office for both groups and a space for the 'pop up' museum on Cyril Callister, the inventor of Vegemite who was born in Raglan.

The Rainbow Arts and Culture Foundation is planning art exhibitions, workshops a creative co-working hub and other creative events for the site.

The foundation is the charitable arm of the Rainbow Serpent Festival held annually in Lexton on the Australia Day long weekend.

Rainbow Arts and Culture Foundation director Lynne Donnelly said she was excited for the foundation to have a permanent base in Beaufort.

"There is a lot of literature out there now around the role art is playing in igniting regional areas," she said.

"Servo@23 is the first part of our long term vision to create a shire wide Pyrenees Art and Culture Trail which harnesses the creative unique installation style at Rainbow into a permanent trail for local community and tourists to enjoy.

"We believe the project is a next step in building a cultural economy for the region."

Ms Donnelly said many future plans would be aimed at engaging with young people through creative mediums. The foundation has already spoken to Beaufort High School regarding a future collaborative art project and arts mentoring internship.

"We have a lot of ideas and are really excited about the direction we are heading in partnership with BPA, and having a new creative space to work from in Beaufort," she said.

Beaufort Progress Association secured a $15,000 federal government Stronger Communities Program grant to complete the first stage of works, including cleaning, painting, setting up the front room, and creating a wall on the front of the building featuring the history of the site.

The group is working to secure further funding with hopes to establish a co-working space, artist workshop space and a landscaped Indigenous plant garden out the back.

Initial works will be completed for the official opening on January 23, before the 2020 Rainbow Serpent Festival kicks off on January 24.

Murals that have been on the front of the building for the past three years will be returned to the Pyrenees Arts Council.

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