After more than one year seeking approval for additions and alterations, the William Farrer Hotel, on the corner of Edward and Peter streets, has been given the green light for its $650,000 makeover.

An updated beer garden, with a playground, a new upper level terrace, bar and function room and more car parking spaces are all on the cards.

The development application says a two-storey addition to the northern elevation of the hotel will provide upgrades to the main bar and conservatory areas at ground floor.

Hotel owner David Barnhill said it has been a long process getting to this point and concepts will likely have to wait until next year.

"The [renovation] will be in line with customer expectations, but we don't envisage this happening in the next couple of weeks," Mr Barnhill said.

"It's good; we've got a lot of work to do yet.

"When we finally get there, there will be more comfortable amenities, a nicer bistro, the restaurant and kitchen will be better equipped and to ensure the beer garden can be used 12 months of the year."

The development application also covers the adjacent lot to the north and includes a single-storey cottage that is used for accommodation and office purposes.

The hotel has not been renovated for at least five years and Mr Barnhill said the new offerings will make the pub a "destination".

"The drawings aren't completed as we've been waiting for the DA approval," he said.

"I can't put a time on it ... we're hoping [the concepts and drawings] will begin in February or March."

Mr Barnhill is expecting the renovation to take about three months to complete and said the business will run as usual, with minimal impact.

An additional 22 car parking spaces will be constructed, which will bring the total number of spaces to 51 across the site, according to the development application.

The building may no longer be its iconic burgundy-red, with plans to paint the exterior of the building.