The state government has announced $242,000 for the project, while Mount Alexander Shire has contributed $35,000.

The works aim to improve existing facilities, including upgrades to the kitchen and office, while adding a multi-purpose meeting room.  

The upgrade is expected to start sometime next year. 

Children and Early Childhood Development Minister Wendy Lovell said the redevelopment was an example of what can be achieved when the state government worked together with Mount Alexander Shire. 

"Investing in early years infrastructure is part of the Coalition Government’s plan to make Victoria a world leader in children's learning and development," she said.  

"Victoria already leads the nation in early childhood education and care, and by improving facilities and increasing access to services, we are making Victoria an even better place for families to raise their children."

Liberal candidate for Bendigo West Michael Langdon, who was at the announcement, said it was good news for Castlemaine families. 

"This project will ensure the Castlemaine area has the facilities it needs to deliver world class education and care to children in the vital years before school," he said.