On Tuesday evening Pyrenees councillors will vote to apply for half a million dollars, from the Victorian state government's Regional Infrastructure Fund.

This funding will go towards a $2 million development proposed for the Beaufort Lake Caravan Park.

Earlier this year at the February council meeting, councillors were presented with a review of the park, completed by Innoviv.

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Cr Damian Ferrari said the review and investment in the project was very timely.

"When you look at the park from a distance it looks okay but when you have a closer look at those amenities it shows its age and deterioration," Cr Ferrari said.

In February all five councillors endorsed a funding application to the federal government asking for $1 million as part of the Building Better Regions Fund.

If the council is successful in securing this funding it will need to commit the other $1 million dollars. In February the council had not approached the state government for extra help but intended to.

The project will develop the amenities in the park, which the review said were outdated and did not accommodate people with disabilities.

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A majority of the money will be spent on building 6 accommodation facilities.

Thirty-one powered sites, 12 annual sites, an amenities block and camp kitchen are also included in the plans.

The project is expected to create 10 new jobs while construction continues and six ongoing jobs once the project is completed.

Innoviv's report suggested creating an online booking system, regularly updating the website and social media platforms to better market the park to tourists.

Pyrenees Shire Council does not yet know if it has been successful in the $1 million federal government grant.

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"It is important to think that Beaufort may get a bypass so we really need to make our attractions attractive," Cr Ferrari said.

"If we do it right we can encourage many return visits which ultimately is what we are after, bringing business to Beaufort."

At the February meeting councillor David Clark said he supported the investment of the caravan park.

"I am very mindful the further away you get the better the park looks at the moment," Cr Clake said.

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"When you get a bit closer it does need a bit of love and care. It is important to develop the southern part of the shire."

If the federal government funding application is unsuccessful the half a million state funding application will stand on its own for a smaller part of the project.

If both were successful, three quarters of the project will be funded.

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