On Thursday, the state government committed $8.4 million to fund stage one of its Sewerage Treatment Plant upgrade, which is expected to be completed by the end of the year. It will also fund stage two, consisting of a pipeline running from the Wineglass Bay Trailhead to the treatment plant, expected to be completed next year.

This comes after an investigation by TasWater into the best options for the area, which was completed in November as an objective of the state government's Freycinet Peninsula Masterplan.

Environment and Parks Minister Roger Jaensch said the projects would address immediate issues in the area over a one-to-five year timeframe, with further planning and assessments to be undertaken on the longer term options.

TasWater corporate and community relations general manager Juliet Mercer thanked the state government for the opportunity to produce the feasibility study.

RELATED STORIES

"All the development we see around us on the edge of this spectacular and iconic national park has grown out of a traditional Tasmanian shack community," she said.

"This growth has, over time, presented challenges, particularly with infrastructure and essential water and sewage services."

Freycinet Association president Susan Carins said the wastewater issue had been ongoing for quite some time.

"As a small community, the growth that we've had here is putting pressure on local infrastructure," she said.

"We've had a number of challenges here in terms of both odour and some beach closures.

"Just as a community, working and living in this beautiful environment, part of it for us is about future-proofing and protecting the environment and we live and work in."

She said they understood that with the growth they had experienced, the community was aware there would be a need for changes in infrastructure.

Glamorgan Spring Bay mayor Debbie Wisby said the announcement was very much appreciated, and the funds would be put to good use.