Crown Lands, which owns the land, has agreed to create an easement for the creation of a pathway.

The new easement will give the council the right to upgrade and maintain the section of pathway on Crown land.

The land connects Bonnells Bay Shopping Centre to the concrete footpath that runs off Verdelho Street.

More than 60 people use the track each day.

The council plans to upgrade the track to a concrete path during the 2015-16 financial year.

In the meantime, Bay Hotel Motel owner Peter Cullen has agreed to level out the track and put road base down as a temporary measure.

Bonnells Bay resident Phillip Bleese was the driving force behind the campaign and said the decision is a great example of government bodies working in unison with the community.

"Our thanks go to Crown Lands and council for responding and reacting to our pleas to have this fixed so promptly," Mr Bleese said. "Particularly, we would like to thank Peter Cullen, who has not only assisted in negotiations but footed the bill for the temporary reconstruction of the path."

Mr Cullen said both Crown Lands and the council have been very proactive and practical.

"They've really tried hard to make it a sensible solution," Mr Cullen said.

A petition started by Mr Bleese to get the path paved (now withdrawn) gained more than 350 signatures.

The campaign also had support from the Lakes Mail, state MP Greg Piper, federal MP Pat Conroy, and the Bonnells Bay Progress Association.

Mr Bleese believes the public campaign helped facilitate the matter.

"Due to public pressure [Crown Lands and council] have responded and done something in a miraculously short time and we publicly thank them," he said.

"It's a great success for the public voicing their opinion."

Mr Cullen has also agreed to concrete the section of path running through his land.