The hall, built in 1890, has been described as the town's "home" and "only neutral asset".

Maintenance and repair work, to begin at the end of September, include restumping, replacing windows and doors and repainting the rotting front door frame.

Glenlyon Shire Hall committee secretary David Levens said if the hall wasn't looked after, it would not be standing today.

In the past 12 months an art show, a craft and art show and the Glenlyon Food and Wine Fayre, which raised $7000, were held at the historic hall.

The Glenlyon playgroup, carpet bowls, book club, dancing for young children and yoga classes are also held at the hall. Community meetings held at the hall include the fire brigade, the newsletter committee and the progress association.

Glenlyon resident Frances Palmer said it was a great relief to hear about the grant.

"Glenlyon is very much a growing community. People move from Melbourne to retire here," she said.

Another of Hepburn Shire's historic landmarks, the Kingston Grandstand, was given a $16,700 grant to restore and replace damaged seating.

The grandstand, built in 1902, is home to one of Victoria's most famous country shows - the Kingston Agricultural Show.

Hepburn Shire Council chief executive officer Victor Szwed congratulated community groups involved in successfully applying for funding for the Kingston Grandstand and Glenlyon Hall.

"The Hepburn Shire has many dedicated community members and groups whose efforts result in some fabulous achievements, which include preserving historic sites buildings for community use," he said.

Ballarat East MLA Geoff Howard said he was delighted these projects were being funded.

He said they were part of $1 million State Government funding for 25 projects to protect Victoria's environmental heritage.

"These works ensure the hall and grandstand continues to be an important community asset," Mr Howard said.