Parkes' main street is among four in the state to be selected for round two of a Community Improvement District (CID) pilot program through the NSW Government.

The pilot will provide $2 million to improve Clarinda Street in Parkes, as well as main streets in Gilgandra, Carlton and Guildford.

Its purpose is to support businesses to coordinate, start implementing change and become self-sustaining CIDs.

The program itself that aims to boost local economies and benefit communities with vibrant streets and precincts by allowing businesses to work together to improve their infrastructure and offerings, is also now permanent.

Legislation to make it faster and easier for businesses to establish CIDs passed NSW Parliament last Thursday.

An improvement district, the government explained, allows businesses to contribute to a central pot and fund projects that benefit them all and the community around them.

"Currently it is possible to form a CID but the process has proven to be complex, cumbersome and slow," said Minister for Transport, Minister for Music and the Night-Time Economy John Graham.

"The CIDs model has fostered business precincts overseas for 50 years, with one example being the Times Square Alliance in New York that is made up of 2500 local businesses that have got together to improve street amenity and coordinate activations.

"Businesses generate four times more revenue in a street with an operating CID model, research has found, with businesses banding together to improve amenities like seating, lighting, street art and signage, or create unique place identities through marketing and communication."

Individual businesses in a designated area would vote in a ballot to establish a CID.

If a two-thirds majority is achieved a CID would be established and a levy introduced.

Levies to fund agreed improvements are expected to cost between $400 and $700 approximately per business.

Under the Community Improvement Districts Act 2025, CIDs can raise levies without pursuing the more complex alternative of striking special rates under the Local Government Act 1993.

One of the CIDs that was supported as a pilot scheme by the Minns Labor Government is the Inner West Ale Trail that has brought together 17 independent breweries across six suburbs - Marrickville, Newtown, St Peters, Camperdown, Enmore and Rozelle – to promote the indie beer boom.

The first round of pilot funding supported 10 communities with all monitored CID pilots reporting an increased average daily spend in the 12 months to February 2025, Mr Graham said.

St Mary's was up $687,000, Murwillumbah up $529,000 and Randwick up $312,000.

"This puts local businesses in the box seat to drive the change they want to see in their community," Mr Graham said.

“Local businesses know what their communities need to thrive.

"This legislation and funding will enable them to coordinate and raise money to make the enhancements their main streets and town centres need.

“This is an approach that is already working in NSW.

“This is part of the government’s fight to bring our night-time economy back to life.

"But it’s not about rebuilding the old model which was highly concentrated in Kings Cross and the CBD. This is about supporting a range of unique precincts to thrive.”