Construction could begin on a splash park in the south east corner of the Benalla Botanical Gardens near the Rocket Park early in the new year.
Heritage Victoria is assessing the Benalla Botanical Gardens location and is calling for community input.
Mayor, Cr Danny Claridge said a splash park for Benalla will be a great community asset.
"The splash park will provide relief from our hot weather for both residents and visitors," Cr Claridge said.
"We are very much looking forward to providing this free community facility which will be a real asset to our town."
The Council assessed five potential splash park locations, with the Botanical Gardens being preferred based the impact of the flood zone, high site visibility, easy car parking, meeting development requirements and existing amenities.
The splash park will include a significant amount of water play equipment, a new plantroom, pipework and services connection, shade structures and landscaping.
The Splash Park project funding has been made possible by Minister Jaclyn Symes and the Victorian State Government.