The Bendigo Agricultural Show Society will receive $125,000 to redevelop a walkway space into the Bendigo Showgrounds' multipurpose market area.
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The funds, from the Federal Government's Regional Agricultural Show Development Grants program, will also help consolidate the venue's seating capacity.
Show society executive officer Ian Furze said the funding will allow the first piece of the showgrounds' redevelopment plan to commence.
"The market space is one of our initial major stages," Mr Furze said.
"Its redevelopment will provide us with a significant improvement to the presentation and functionality of the space."
Senator for Victoria Sarah Henderson said the grant will make the society's shows bigger and better than ever.
"Agricultural shows are so important in regional Victoria and thanks to these grants, they will be better than ever," Senator Henderson said.
Mr Furze welcomes the funding and says there are further improvements required to the North Bendigo site.
"There are some extra works needed to the aged pavilions, roadways and entrance to the showgrounds that would bring the facilities up to date," Mr Furze said.
"We anticipate getting this initial project underway in 12 months."
The Maldon and Baringhup Agricultural Society also received $116,000 from the government's program.
The funds will be used to install a generator, switchboards, underground cabling and public address system at the Maldon Recreation Reserve.
