The crossing upgrade includes greenery and trees and follows a Hepburn Shire streetscape study two years ago.

A Ballarat company undertook the works, with more projects in the main street to follow in coming months. 

Future initiatives include more trees, revitalising the laneways, providing safer pedestrian crossings and reinstating a historical horse trough in Burke Square.

The streetscape plans were met with criticism from some residents when approved in 2012. 

But mayor Kate Redwood said she was utterly thrilled to drive past the new crossing on the weekend. 

"I saw people sitting on the wall with two dogs, a lady get out of a disabled car park easily and there was a pusher with kids not getting run over," she said. 

"It's amazing how much safer and more pleasant it is now and these works really will make a huge difference."

The Daylesford and Hepburn Springs Business and Tourism Association also threw their support behind the project. 

"We have been very vocal in the past insisting that the improvements need to be incorporated into the annual budget as soon as possible," president Robyne Head said. 

"We congratulate the council on this first stage of the upgrade and look forward to other improvements over the coming year."