The renewal of the ageing tourist attraction will form the basis of a case for a share in the Cobbora Transition Fund.

The project, planned with a view to lengthening the average stay of visitors to Dubbo, gained unanimous support from councillors on Monday.

It must also satisfy Infrastructure NSW before money from the fund is released.

Dubbo mayor Mathew Dickerson had earlier listed a revamped Old Dubbo Gaol as one way to enhance and improve the central business district (CBD).

He said he wanted to see continued growth and economic strength in the CBD as Cr Bill Kelly raised concerns about the viability of the zone.

Cr Kelly said retailers could struggle in the new year with the advance of shopping developments in other parts of the city and he called for the council to step on to the front foot.

Cr Dickerson, who had no "grave concerns" about the CBD, earlier this week said the council had a number of actions planned or underway to help boost the area.

"(The council) can not make businesses lease shops in the CBD but (it) has a role to play in partnering with the chamber of commerce and different sectors to respond to specific needs," he said.

"The your.dubbo campaign saw (the council) partner with Dubbo Chamber of Commerce and Industry and local businesses throughout the city to enhance and build the brand of retail in the city.

"This wasn't limited to the CBD but had a heavy focus on the CBD.

"This campaign assisted in business development as well as promotion.

"We will be running another your.dubbo campaign in 2014."

The city strategy services unit of council had completed a commercial floor space inventory and market analysis for the CBD and all of Dubbo and were analyzing its results, he said.

This would inform a new strategy that would look at the CBD's role and function in the commercial hierarchy of Dubbo, he said.

The CBD banner campaign was another initiative put in place by the council in partnership with industry to "liven up the CBD" and it would continue in 2014, he said.