Victorian Minister for Tourism John Pandazopoulos announced the funding on Friday and the Hepburn Spa resort redevelopment is due to start after October 22.

He said the $100,700 package would strengthen organisational development in Hepburn Springs and Daylesford.

"Victoria is equally rated as the number one spa capital of Australia and it is because of the work of people here," he said.

Mr Pandazopoulos said the funding was in recognition of community concern about the temporary closure.

Mr Pandazopoulos said $50,000 would be put towards a Tourism Destination Development Plan examining the successes and challenges and of tourism in the area.

Other initiatives to be funded under the package include brochures outlining alternative spas and therapies in the area, marketing activities, explanatory visitor signage, employment of a project officer to facilitate industry

development programs and production of a community newsletter.

Controversy surrounding the redevelopment for the Hepburn Spa resort to be a staged project has been put to rest, according to director Alex Zotos.

Hepburn Shire Council deputy mayor Bill McClenaghan said the funding was received well by the council.

He said there was so much to offer in the area including spas and mineral water.

"That is what we are seeking to promote," he said.

Also on his visit, Mr Pandazopoulos launched a brochure advertising the vibrant and historic Hepburn Springs.

Produced by the Bathhouse Business and Community Liaison Group, the fold-out brochure includes a map of the Hepburn Springs village walk - a 3.5 kilometre loop that passes through natural wonders, eateries, wellness centres

and heritage buildings.

It outlines activities and accommodation ideas.

"I am gobsmacked that a small town can punch in so many heritage activities," Mr Pandazopoulos said.

There will be 20,000 copies distributed to local businesses.

"I looked forward to seeing things work out really well," Mr Pandazopoulos said.