The project will turn the site into an artist residence, studio and art hotel.

Working Heritage, and project partners Monash Art Design and Architecture, were allocated $75,000 by Creative Victoria last year to develop a creative future for the building and surrounds.

Working Heritage carried out significant repairs at the building to prepare for the transformation, including the removal of more recent additions to the buildings.

Working Heritage executive officer Ross Turnbull said the building would be re-fitted out to allow artists to work and live at the site.

"The main area will have a separate bedroom space with a bathroom and kitchenette. When there is no artist in residence using the space, it will be available for short-stay accommodation," he said.

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Mr Turnbull said the pilot project was in its planning stages.

"The pilot project will start in December, and run for nine to 12 months. That way we'll be able to run it across more than one season. It will also give artists and visitors more opportunities to use the space," he said.

"We've put a Horsham consultant in charge of preparing the business case. If the pilot is successful, I hope it will give us some momentum for a funding bid to make the conversion permanent."

Working Heritage has also allocated $150,000 to make the site accessible for people with disabilities.

Mr Turnbull said Working Heritage would submit its planning permit to Yarriambiack Shire Council this week.

"We're also about to set up a community working group to ensure the project is supported outside the artist residencies," he said.

He said Working Heritage would call for interested artists after the council permit was approved.

The Warracknabeal Court House was built in 1890 after a population boom. The building started life as a court of petty sessions and continued to function as a court house until 1989.

At various times it also hosted the Lands and Survey Department and an Infant Welfare Service.

The original building is one of a set of seven similar courthouses throughout north-western Victoria designed by Public Works Department architect S.E Bindley.

More recently the Warracknabeal Historical Society has used the building as a meeting space.

The court house stands on the land of the Wotjobaluk people, represented by the Barengi Gadjin Land Council.

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