The Victorian government will spend $1.5 million building "eco-pod accommodation" at Mount Buffalo.
"The eco pod investment comes as Parks Victoria prepares to instigate an Expression of Interest process to seek private investment for a cafe within the iconic Mount Buffalo Chalet," a statement stated.
"The EOI proposal is for a year-round cafe in the front part of the Chalet, which would offer regional produce along with self-guided tours of the Chalet ballroom.
"Development of the Chalet is subject to planning requirements and the Government is working with the Alpine Shire to ensure any planning restrictions are resolved ahead of the EOI process expected to commence in late 2020."
It is unclear how closely the "eco-pod accommodation" will reflect plans in the PricewaterhouseCoopers report, funded by the Victorian government.
The report looked at the commercial feasibility of 10 low-impact, sustainable eco-pods "assumed to be pre-fabricated off-site and located at Lake Catani".
The cabins were envisaged to encompass a sleeping area, seating area and wash up area including an environmental chemical toilet, with power and lighting supplied via renewable energy sources.
The concept, costed at $1.4 million, was among five that PwC were commissioned to investigate.
PwC recommended a cafe in the Mount Buffalo Chalet and the wilderness eco-pods as the first and second concepts that should be developed.
"Some concepts as currently envisaged are more realisable and tangible than others (i.e. Cafe in the Chalet and Wilderness Eco-Pods) as the capital requirements are relatively low, the risks more controllable and the benefit to the region considerable - financially, socially and economically," PwC stated.
Creating a cafe in the Mount Buffalo Chalet has been the priority for Alpine Council, which put forward an offer of funding in the hope the Victorian government would make an election commitment to establish a cafe, but it went unanswered.
At the time, Councillor John Forsyth said: "When you look through the seven proposals, the glass-bottomed sky walkway is a bit of a pie-in-the-sky; glamping will probably come along anyway; but to get general visitation, the cafe in the chalet is probably the best option there is".
IN OTHER NEWS:
The government has previously committed $1.5 million to upgrade the Gorge Visitor Centre Area within the Mount Buffalo National Park.
The project has been carried out in two stages, due to the complexity of works.
The stage two works featuring a new lookout are nearly complete and will also enhance Mount Buffalo National Park's appeal as an all-seasons destination.
Visitation at the national park is increasing by five per cent annually, with the majority of visitors attending over summer.