Parkes Shire Council's transformation of the Parkes CBD into a vibrant shared space is set to continue this year, following its successful application for $499,930 in grant funding from the NSW Government's Streets as Shared Spaces Program.

Parkes Shire Mayor Cr Ken Keith OAM welcomed the NSW Government's announcement and congratulated all who were involved in application process.

"The CBD is the community's most important meeting space - it's where locals and visitors come to shop, eat and drink, attend events and utilise community facilities on a daily basis.

"We've done a lot of work in recent years to improve the look and feel of the Parkes CBD to make it a more vibrant and welcoming precinct, including completing the Main Street Revitalisation Project and Cooke Park Multipurpose Centre.

"This next stage of works will focus on activating the southern end of Clarinda Street, including converting the vacant block beside the Hong Loch Chinese Restaurant into an open-air plaza for public space and improving pedestrian connectivity between Clarinda and Welcome Streets," said Cr Keith.

The works will include surface levelling and sealing, drainage works and landscaping, as well as the installation of new bollards, street furniture and festoon lighting, which will help activate the public space, day and night.

The Streets as Shared Spaces Program aims to support public space improvements that strengthen the amenity, accessibility and economic vitality of high streets and town centres.

Cr Keith said, "Outdoor dining is more important than ever as we adjust to the 'new normal' way of life with COVID-19. The hospitality sector across NSW has seen a sharp increase in consumer demand for alfresco dining due to public health and safety considerations.

"This funding will also allow us to construct two additional dining platforms, similar to those currently situated beside Bella's Restaurant and Packed Cones Gelato, which will be leased to local businesses to help them accommodate alfresco dining," added the Mayor.

The projects will commence this month, with completion expected in February 2023.