NATIMUK Pre-School celebrated the official opening of its refurbished premises on Friday.
The $195,000 development includes a new foyer, a new office, a universal access toilet, redevelopments to the bathroom amenities and additional storage.
Children can also use the verandah year-round after the area was fitted with new blinds.
Natimuk Pre-School early years teacher Heidi Lees said the benefits were numerous.
"It's just so much more versatile and user-friendly," she said.
The enhancements have been in use since construction was completed in June.
"Before, children used to hang their bags outside on the verandah," Mrs Lees said.
"Now, there's a locker area in the foyer."
Thirteen children attend the pre-school: seven four-year-olds and six three-year-olds.
Mrs Lees said some children travelled from as far as Harrow for the three-year-old program.
She said the development had created space for additional children to access programs, if required.
Member for Lowan Hugh Delahunty joined staff, families and Horsham Rural City Council staff at Friday's ceremony.
He said quality early childhood education and care was crucial for young children.
"It helps them develop the skills they need to succeed at school and beyond," he said.
The State Government funded the Natimuk Pre-School extension.
Mr Delahunty said the government had invested more than $751,000 in early childhood infrastructure in Horsham Rural City.