The signs will celebrate the township's history and mark the 100th anniversary of Australia's first powered flight at Diggers Rest, at dawn on March 18, 1910, by American escapologist Harry Houdini.

Diggers Rest began life during the gold rush as a stopover for miners on their way to the Bendigo goldfields. Melton Mayor Renata Cugliari said the signage would provide visitors with an overview of the history and colour of the township.

"Diggers Rest has a wonderfully diverse history and this new signage will allow the community and visitors alike to share in the township's vibrant past. The signage will help foster a strong sense of community pride and recognition of Diggers Rest's unique place in Australia's aviation history."

The project is an initiative of Melton Council, Diggers Rest Residents Association, Lions Club of Diggers Rest and the community.

The signs will be installed early next year in time for Houdini celebrations at Diggers Rest in March next year.