Pinjarra residents will be able to enjoy the Exchange Hotel in a new format, with the Shire of Murray approving a development approval to revamp the heritage site into an entertainment and hospitality complex.
At the Shire's monthly council meeting on Thursday night, councillors voted unanimously to approve a proposal from the Strzelecki Group.
The proponent plans to revitalise the site by re-establishing a hotel, developing specialty shops, an alfresco area and playground, restaurant, beer garden and allow for pop-up markets.
Re-elected Shire president David Bolt said the approval was "historic" as the potential for the site to be renewed and reused had been in the works for many years.
The funds raised from the sale of the site will be re-allocated to a Reserve Fund, which will be in place to increase town centre parking, when the need arises in the future.
The Shire has previously indicated the hotel could be completed by April 2022, with the creation of jobs and a boost to the local economy seen as major benefits for the community.