Ripon State Labor MP Joe Helper announced the funding last week.

Mr Helper said the development was good news for the local economy and would further strengthen the town's already significant appeal.

``The construction of a period-style rotunda and associated works including landscaping, pathways and signage will improve public amenity and strengthen Clunes' significant tourism and heritage appeal,'' he said.

``The project will improve the appearance of Collins Place and provide a valuable community asset with access to both shelter and power.

``Community infrastructure projects such as this are an invaluable way of supporting local economic and employment opportunities.''

Mr Helper said Clunes' historic streetscape had featured in a number of films, television and advertising productions.

``The new rotunda will complement the existing streetscape and help ensure that Clunes continues to capitalise on its historic appeal,'' he said.

``The project enjoys strong community support, as demonstrated by the involvement of the Clunes Tourism & Development Association, Clunes & Locality Artists Group and Creative Clunes''

The council will contribute $30,000 to the $120,000 project.