Infrastructure Minister Rene Hidding yesterday said community consultation and design work could now begin for the duplication of the highway from Breadalbane to Perth.

The bypass is part of a joint $50 million upgrade funded by both the state and federal governments.

Mr Hidding attended the Northern Midlands Council meeting on Monday and said a consultative group would be formed as part of a council request.

"The road upgrades will have a critical influence on the future of Perth and nearby communities, and particularly on future development and land use planning," he said.

"That's why the government is working with the Northern Midlands Council to look at the bigger picture, and why we want to ensure that the community has opportunities to have its say."

Northern Midlands Mayor David Downie said the formation of a reference group was key for the success of the works.

"People have been concerned and started talking to the council when they've seen the surveyors out there," Cr Downie said.

"It is most important to have this reference group — this road is going to have an effect on Perth, people will want good access to the southern and northern end of Perth and this road will define the town."

Members of the reference group include council engineering and planning staff, State Growth Department project managers and community representatives.

The bypass of the town will be split into three parts, including a southern link road between the South Esk River and Illawarra Road, and a western link road connecting that road and the Breadalbane stretch duplication.