A $480,000 upgrade to Diamond Waters Caravan Park has got the planning green light.

The project involves the construction of a new community and amenities building and changes to the layout including roads, parking and sites.

There will be changes to the use of sites within the caravan park from 78 long-term sites, 38 short-term sites and 18 camp sites to 82 long-term sites, 52 short-term sites and five camp sites.

That provides an overall increase of five sites.

The tourist sites will be located in the bottom section of the park with permanent residents at home in the top section.

The new amenities block will be conveniently situated for the short-term sites and camp sites, and there will be an upgraded camp kitchen.

The amenities area will include two family bathrooms with disability access.

The forecourt area will also be improved and there will be better parking.

Diamond Waters Caravan Park co-owner Cicely Sylow said the park would cater to a more diverse range of visitors as a result of the upgrade.

"We will have improved facilities to attract more visitors to the region," Ms Sylow said.

The upgrade will be completed in stages.

Ms Sylow said there would also be a lot of operational improvements which people probably wouldn't see.

Port Macquarie-Hastings Council's Development Assessment Panel approved the caravan park's upgrade along with a koala plan of management.

The council report said the upgrade included a minor change to the mix of long and short-term sites and was not expected to significantly impact existing tourist providers or the provision of low-cost housing in the locality.

About 100 permanent residents call the Diamond Head Road caravan park home.

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