The Dja Dja Wurrung plan is to transform land near Kangaroo Flat's Number 7 Reservoir into a camping area as part of a $2 million state government boost to outdoor recreation across the greater Bendigo region.

DJAARA chief executive Rodney Carter said it was a way of connecting to Country in a modern way.

"Many homes existed on Country, and there were villages and places of community living, sadly those homes are no longer standing," he said.

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The Kangaroo Flat camping village could become the first of many in land where the Dja Dja Wurrung have a presence, Mr Carter said.

DJAARA wants camp visitors to experience Dja Dja Wurrung culture and is considering laying out the area using traditional ideas like a communal fire pit for gathering and cooking.

The camp would bring a modern twist to design ideas that could include prominent spaces for Elders and families.

It could also be populated with native food and fibre plans, surrounding structures infused with traditional ideas Dja Dja Wurrung ancestors would have used in the area's box-ironbark forests, project manager Tim Hoogwert said.

"Even the shape of rooflines would likely be different, so that they tell a story about culture and place," he said.

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Final plans are yet to be locked in and will be shaped by a consultation with both Dja Dja Wurrung members, nearby residents and community groups.

DJAARA hopes to finish the project by June 2022.

The camp could end up being the first of many in areas where the Dja Dja Wurrung already have a lead role caring for and healing Country.

The Kangaroo Flat funding is part of a wider $105 million government spend improving camping and outdoor recreation facilities in Victoria.

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