Member for Bendigo West Maree Edwards today announced $4.5 million towards the planned revitalisation of Maldon's streetscape.

The funding is part of the state's $2.7 billion Building Works package.

The project will include the restoration of Maldon's heritage features and includes the under-grounding of power lines.

Shopfronts will be rejuvenated and traffic flow and pedestrian access improved with the aim of making Maldon more attractive for residents, workers and visitors.

Ms Edwards said Maldon is heavily reliant on tourism and has been doing it tough since the COVID-19 pandemic began.

"This funding will give the community confidence that the future of the town will be sustainable and is heritage protected," Ms Edwards said.

Tarrengower Ward councillor Stephen Gardner said he is excited about the project, one that has been a long-term aspiration of the community.

"A lot of the town is looking a bit tired, so reinvigorating the streetscape will hopefully attract more tourists to the area in the coming months," Mr Gardner said.

The state government has invested a further $500,000 through the Regional Tourism Infrastructure Fund to upgrade the Victorian Goldfields Railway service between Maldon and Castlemaine.

The service has been operating for more than 20 years.

The state is also investing $87 million to support 31 new shovel-ready construction projects across regional and rural Victoria.

"Regional Victoria is critical to supporting our state's recovery from the impacts of coronavirus and we're backing projects that will drive jobs and attract more visitors back to our regions," Ms Edwards said.

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