The Mount Alexander Animal Welfare group will improve their existing kennels thanks to a $40,000 grant.
It will mean better insulated walls and ceilings for the enclosures to help control temperatures, improved fencing to better secure dogs, a new ride-on mower and an industrial quality washer and dryer.
New software will also be introduced at the site to improve records of the animals.
The $40,000 grant was awarded through the state government's Animal Welfare Grants Program.
It follows a $50,000 grant awarded to MAAW in 2018 to help establish a new cattery.
The cattery is expected to be completed by November.
MAAW established itself in July, 2017, when the RSPCA made the decision withdraw its serves from Castlemaine.
Since then, the group has purchased the animal shelter (after first taking over the lease) and begun work on a new cattery for the site.
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