In a report, the council's engineering design coordinator Lyndon White said the project will seal 880 metres of an existing gravel road to provide continuous sealed access from Dooen Road to the Sunnyside area in Horsham.

He said the project will improve connections to Horsham Primary School, Wimmera Health Care Group and Holy Trinity Lutheran College. 

Mr White said the council received a bid of $615,175 for the project, which was under budget of $670,358. 

The state government has contributed $585,000 to the project, Holy Trinity Lutheran College $75,000 and Horsham Council $10,358. 

Councillor Pam Clarke said the project will create a "far better and more usable" road.

"It is used extensively by families at Holy Trinity Lutheran College and there's is dust and dirt everywhere and it's getting bumpy as the stones come up," she said. 

Cr David Grimble said the reconstruction of Peppertree Lane improved "connectivity" to the river precinct, Baillie Street and the nearby schools. 

Crs Grimble, Clarke, Mark Radford, Josh Koenig, John Robinson and Les Power voted in favour of the road reconstruction.

Cr Alethea Gulvin declared a conflict of interest due to her employment at Holy Trinity Lutheran College.

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