Tatiara District Council has received $700,000 from the Federal Government to go towards upgrading the Bordertown Caravan Park.
The funding came as part of the government's $207 million investment under Round 4 of the highly successful Building Better Regions Fund (BBRF).
Council CEO Anne Champness said they intend to use the funding to build eight new cabins, remove permanent onsite vans and outdated cabins, and separate the caravan/RV area.
Landscaping is also planned, which will improve the park's overall appearance and amenities.
In total, the council's decision to upgrade the caravan park is expected to cost $1.4 million, but Ms Champness said changes are well overdue for the "outdated" park.
The positive changes to the park will also potentially aid future individuals who decide to move to the town, as many are well aware of the lack of rental properties throughout the Tatiara district.
"It can also provide a little bit of back-up to alleviate the challenge, because people come to region and they don't have a rental straight up," Ms Champness said.
"I think, at the moment, we just don't have any rental accommodation, so these upgrades will give people somewhere to stay for 2-3 months while they try to find a long-term place to stay."
Member for Barker Tony Pasin said the development of the Bordertown Caravan Park will provide substantial economic and community benefit, integral to the future sustainability of the township.
"It's projects like this that will transform communities and help ensure our productive and vibrant region remains strong, resilient and prosperous in the long term," Mr Pasin said.
He also stated the development will create jobs during construction and operation, with council aiming to use local businesses during the park's modernisation.
An updated facility will potentially entice more visitors to stay at the caravan park, whilst improving the district's capacity to host and attract events in the future.
Mr Pasin stated that BBRF projects strengthen local economies and drive much-needed local procurement.
"Through the BBRF, the Australian Government is continuing its long-standing commitment to regional Australia, making vital local projects a reality, driving economic development and creating stronger partnerships across our regional communities," Mr Pasin said.
"We have seen outstanding outcomes from the first three rounds of the BBRF and this fourth round will continue that trend by funding critical local infrastructure projects."