One of Mount Beauty's most treasured assets is about to undergo a significant renewal to last another 40 years.

Alpine Shire Council has awarded a contract for renewal works of the Mount Beauty Pondage Walk to Richardson Earthworks and Maintenance for the lump sum price of $237,855 (excluding GST).

Work is scheduled to start next Monday, 20 April and will see the 3km path around the pondage widened to two metres, with a new asphalt surface, and the path's shoulders on either side redressed with topsoil and grass seed.

Council has confirmed the works will see the path closed for a period of approximately four weeks, subject to weather.

It said the timing was chosen to ensure the works were conducted in an appropriate weather window whilst avoiding clashes with planned events.

While the project has been welcomed by the community, a number of local groups were last week still awaiting clarification of any potential impacts to their events.

Mt Beauty Running Festival co-ordinator, Sarah Hinde, told the Alpine Observer/Myrtleford Times that the works had come as a surprise.

"We only found out about it last week and while it's welcomed news, it has been causing a bit of stress as we prepare for the festival on Saturday, 16 May," she said.

"Council staff have assured us that we have been factored into the planning and they'll carry out the works, potentially in stages, without interfering with the festival, so we're trusting in their word.

"This is the 47th year for the festival, which actually has some grant funding from council, and all four of our events (3km, 10km, 18km trail run and 21km) use the pondage as part of their course.

"Our registrations are running on par to previous years and we're hopeful of similar numbers...about 200 entrants."

Ms Hinde said the not-for-profit festival remains a key community event, with groups such as Mt Beauty Playgroup using income from its cake stall and barbecue as their key fundraising activities.

Mt Beauty Park Run, which uses the pondage walking trail for its free, weekly 5km runs every Saturday morning at 8am, was also still awaiting confirmation of the works after also being surprised by the news.

Volunteer Helen L'Huillier OAM said the renewal would be wonderful, particularly for a one kilometre stretch between the primary and secondary schools where the asphalt was broken up and impacted by tree roots.

"It's a marvellous walk and is extremely popular with walkers and cyclists," she said.

Alpine Shire Mayor, Cr Sarah Nicholas, said the works reflected the importance of the walking path to the residents and visitors of the Upper Kiewa Valley.

"It is spectacular walking, running, or riding around the Mount Beauty Pondage with the tranquility of the water beside you and Mount Bogong in front of you," she said.

"There is also a beautiful outlook the other way, not to mention the north and south views from the elevated dam wall.

"We're pleased to be able to lay down a new asphalt surface so that people can continue to use the path for decades into the future."

Cr Nicholas also recognised the support of AGL as the land manager of the dam wall.

Council said there will be signage at entry and exit points of the walking path during the closures.

In awarding the contract, council noted while upfront delivery costs of an asphalt wearing course was higher than a spray seal, the lifecycle cost for an asphalt surface is lower as it lasts 40 years as opposed to 15 years.