A new skate park will also feature within the riverfront area, with the design produced back in 2017 by local skaters and a group of skate park designers.
The funding comes within a recent spending spree from the Federal Government within the Building Better Regions Fund, following the announcement of a $10 million dollar sporting facility in Mildura yesterday.
The Swan Hill Rural City Council have outlined three stages for the project; the first will involve constructing the active play area including a skate park and playground equipment, the second will prepare detailed designs of how the riverfront will link to the CBD and the third will include constructing pathways and street crossings to connect the CBD to the riverfront precinct.
Within the conditions of the Building Better Regions Fund, the project will need to be completed within the next three years, however both the Swan Hill Rural City Council and Broad agree the completion of the project should and most likely will be sooner.
Mr Broad says the major assets of the town will now be linked through the project.
"I've always seen Swan Hill as a town where you drive through and haven't had the access to the beauty of the river; opening the river up to the town is a really good initiative," Broad said.
"Also to put those good family activities in for tourists to stay and for locals have more to do; it's a beautiful area which we want people to come to and this will make it happen."
Swan Hill Rural City Council CEO John McLinden says the long process behind the funding will not be news to the public, however the announcement will help the project on its way.
"There's been almost a decade worth of work go into the planning of the Riverfront Masterplan, and this is a key component of that," McLinden said.
"There's a lot still to do but it is rewarding to see that work being funded and recognised."
Swan Hill Rural City Council Mayor Les McPhee sees the tourism opportunities growing in a win-win for everyone within the region.
"As far as big projects go, this'll be really exciting for the community," McPhee said.
"This project will make Swan Hill even more of a regional asset; people can travel through Swan Hill and not even realise how close they are to the river, however with these developments we're hoping people stop and spend more money within our town."