Dunsborough's Dunn Bay Road precinct development underway

Dunsborough will soon be home to a new $18 million hospitality hotspot, with works now underway at the construction site on Dunn Bay Road.

Community groups joined Busselton mayor Grant Henley and other stakeholders to celebrate the break-ground in Dunsborough's town centre on Friday.

The new hub will include a micro-brewery, coffee roastery, kitchen and relaxed dining with a green-scaped alfresco, all designed by WA architects Finespun.

Organisers say the development will help with the lack of accommodation in Dunsborough town centre, with plans including 18 private and low-lying cabins to be built among the natural vegetation.

The project was unanimously approved by the City of Busselton council in May this year, with Perkins Builders appointed last month for the multi-million dollar project.

Representatives from the Dunsborough Progress Association attended the ceremony, explaining that the project had strong support from locals.

"We are thrilled to see a development taking the right approach in fitting in with the town's village character," association president Jacquie Happ said.

Mayor Grant Henley also said he was glad to see works get underway.

"We look forward to seeing this exciting addition to Dunsborough's town centre come to fruition," he said.

Site owners Peter and George Atzemis have had a long association with Dunsborough and said they were determined to create an authentic South West experience in the centre of town.

"We were intent on creating a destination that embraces the local culture and allows visitors and locals alike to experience an 'escape' while still in walking distance of the town centre," Peter said.

"Many aspects of 61 Dunn Bay Road exist individually throughout the region but are not accessible without transportation between venues. We have looked to overcome this by instead offering all of these attractive components in a central location."

The finished precinct will be operated by hospitality heavyweight Miles Hull, of Little Creatures.

He said his intent was to create a place that provided the town with better options for morning, noon and night food, beverage and accommodation.

"Ultimately, we want to deliver a precinct with a distinct 'down-south' vibe - somewhere you can visit straight from the beach, walk or cycle to - to enjoy a quality coffee, lunch, dinner or a late evening drink," he said.

With works due to be finished for summer 2022, Place Development confirmed negotiations are underway with a handful of iconic brands for the remaining retail spots.