Plans to revitalise Dunedin's 'neglected' waterfront have been given a major boost.

Regional Economic Development Minister Shane Jones committed $820,000 from the Provincial Growth Fund to complete a business case of the city's waterfront project while in Dunedin on Thursday afternoon.

"You can't deny that in its full form this is going to be iconic and transformational," said of the plan to revitalise the area.

Hamish McNeilly Minister Shane Jones signs an MOU with other city leaders for Dunedin's waterfront redevelopment.

The area had been "neglected for far too long", and he did not rule out further Government funding.

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​Jones, who was joined by fellow Cabinet Ministers Clare Curran, David Parker and David Clark said his colleagues wanted to see "action and pace" on the plans.

SUPPLIED Dunedin's proposed waterfront development is part of a 25-year vision for the southern city.

He signed a Memorandum of Understanding with the project's partners, including the Dunedin City Council, Otago Regional Council, Port Otago, University of Otago, Ngāi Tahu, architect Damien van Brandenburg, and Ian Taylor, of Animation Research Ltd.

He also announced $60,000 for the development of an economic development strategy for Otago.

Dunedin Mayor Dave Cull told Stuff another funding application would be made before Christmas, with other applications likely including a city engineering hub proposal.

Last year the city unveiled spectacular designs for a new-look waterfront.

That included a shell-shaped hotel and conference centre reminiscent of the Sydney Opera House, a marine education centre shaped like a whale's tail, a redesigned steamer basin and new trees.

The plan, driven by van Brandenburg and Taylor, is part of a 25-year vision for the southern city.

SUPPLIED Another view of the proposal unveiled in 2017.

A crucial component to the plan is a bridge linking the city's waterfront area to cyclists and pedestrians, and redevelop the Steamer Basin area.

In December, the Dunedin City Council voted to pursue a $20 million option, with funders to include the NZ Transport Agency and potentially the provincial growth fund.

Private plans for a five-star hotel development on the city's waterfront failed to gain approval, including a $100m plan for a 27-storey hotel with apartments in 2013.

Hamish McNeilly/Stuff Minister Shane Jones, after announcing funding for Dunedin's waterfront redevelopment, inspects the area.

The Provincial Growth Fund is offering $1 billion a year up for grabs. About 300 applications or expressions of interest worth $1.4b have poured in.

SUPPLIED Dunedin's proposed bridge as part of an ambitious waterfront development.

SUPPLIED A conference centre and hotel in the shape of shells are part of a proposed design for Dunedin waterfront.