The project is funded by a $50,000 Regional and Rural Development grant, $20,000 from a private Sale donor, and in-kind contribution by Sale and District Agricultural Society.

The $50,000 is one of 12 grants to agricultural societies and field days across Victoria to help the societies and field day organizations with development of community events.

Regional and Rural Development Minister Jacinta Allan said the round-one funding was part of the State Government's $4 million rural showgrounds infrastructure renewal fund.

"Since the rural showgrounds infrastructure renewal fund was established Regional Development Victoria has received numerous inquiries about funding for a range of projects and, as a result, RDV and the Victorian Agricultural Shows Ltd have collaborated to create a new program that will benefit the majority of rural show societies and field day organisations,'' she said.

The new state-of-art kitchen and new adjoining dining area will be built into the north-west section of the arts and crafts pavilion, with a new verandah running the full pavilion frontage.

The kitchen will be available for major events and especially for motorhome and caravan clubs using the Showgrounds caravan park.

The anonymous donor of the $20,000 said the reason for the gift was to boost Sale's tourism economy by attracting more motorhomes and caravans to the showgrounds caravan park and this was achievable by providing a modern, large kitchen with associated dining area where club members could self-cater and gather.

The society said the $20,000 seeded its application for the Regional and Rural Development grant.