Whanganui District Council will receive government funding to revamp Drews Ave into a more "pedestrian-friendly" space.
The money is from Waka Kotahi NZ Transport Agency's (NZTA) Innovating Streets for People fund.
NZTA's urban mobility programme manager Kathryn King said the Innovating Streets pilot fund, which provided 90 per cent of the funding for projects, supported "quick, low-cost interim improvements that create more people-friendly spaces in our neighbourhoods".
"These interim projects can then be evaluated and used to inform permanent upgrades," King said.
District councillor Helen Craig, who chairs the Town Centre Regeneration Project, said project manager Ellen Young had been working on the transformational project for some time.