HORSHAM RSL has plans to expand, creating more space for memorabilia, functions and for members to congregate.
President John Brondsema said the RSL had bought land fronting Baillie Street.
"It puts us on the main Melbourne to Adelaide road, and that is very important for the RSL," he said.
The RSL intends to expand about 11 metres into its existing rear carpark.
A function room, members' lounge and memorabilia exhibition space will be included in the new building.
It will also include a second RSL entrance, from Baillie Street.
"The development is going to be an exciting-looking building when it's finished," Mr Brondsema said.
A carpark will consume the majority of the newly purchased block of land, which backs onto the RSL.
It is presently home to a tenant.
Mr Brondsema said the project timeframe would depend on when the tenant decided to move out of the house.
"While she is still alive and well, she will stay in the house as our guest," he said.
The RSL started negotiations to buy the land two years ago, and finished paying it off in the past financial year. Detailed plans for the proposal have yet to be drawn up.
"Hopefully that will start within two years," Mr Brondsema said.
He expected it to be a multi-million-dollar development.
"What we badly need is a function area and to increase our members' lounge," he said.
"The functions we have now can be for no more than about 50 people because of space restrictions.
"Our dining room holds up to 150 people, and sometimes if it is a very large function we can close the dining room off.
"But then diners have to sit in the lounge, and things like that."
He hoped people would be excited about the RSL's plans.
"Certainly I as president, and also my committee, are very excited about it, and so are our members," he said.