The money, part of a $550 million Regional and Local Community Infrastructure program, will be spent at the town's Doug Lindsay Recreation Reserve.

Mayor Bill McClenaghan said both the council and the community were delighted the shire's funding application had been successful.

``The reserve currently hosts soccer and netball and these funds will now allow the reserve to become a central sports facility for Creswick and surrounding towns, catering for a wide variety of sporting interests,'' Cr McClenaghan said.

``This funding will provide an enormous boost to the community and fast track the development of the popular reserve.

``Creswick has endeavoured for years to get improved sporting facilities in one suitable location.

``Council earlier this year decided to make the refurbishment of this reserve our top-priority project and we now look forward to achieving this goal along with shortly appointing a new reserve management committee with all user groups represented.''

The reserve will now be home to a new football oval and associated infrastructure including a pavilion.

Cr McClenaghan said the council would contribute $300,000 over the next two financial years and the community would also be responsible for raising $50,000 and another $10,000 in-kind.