Installation of the first poles, cameras and Wi-Fi transmitters has started in Terralong Street.

The cameras blend in with the Kiama streetscape and are based on cameras used in heritage areas such as the City of Westminster in London.

In stage one, 14 cameras will cover Terralong Street and Railway Parade, while a second stage of 10 cameras will loop back to Terralong Street via Bong Bong and Manning streets. It is expected the second stage will be operational by the end of May.

Once completed, the network will comprise 24 high-definition CCTV cameras and free Wi-Fi access linked to the national broadband network.

The Wi-Fi access will provide visitors with access to the NBN along Kiama main streets, Hindmarsh Park and Black Beach.

The $280,000 project is jointly funded by the three levels of government. An election commitment of $150,000 from Gilmore MP Ann Sudmalis allowed the council to expand on its initial $130,000 plans.

Kiama councillor Dennis Seage said the cameras were expected to "go live" once a memorandum of understanding was signed with NSW Police.

The council also still needs to endorse a privacy policy relating to the use of CCTV cameras at its March council meeting.

Cr Seage said though crime in the Kiama CBD might be relatively low compared with some other CBD areas on the South Coast, the Kiama CBD had been the scene of an armed robbery which "was one too many".

He said Kiama Council's work on the cameras would show the way for other councils.

Kiama MP Gareth Ward was confident Kiama Council would avoid the problems faced by Shoalhaven City Council, which was forced to switch off its cameras for a short period in 2013 following an Administrative Decisions Tribunal decision.

Mr Ward said the government had made changes to the Privacy and Personal Information Protection Act allowing the councils to collect camera footage for the purpose of crime prevention.

"If you are doing nothing wrong, you have nothing to hide," Mr Ward said.

Mayor Brian Petschler said the Kiama CCTV and Wi-Fi project was an important initiative of Kiama Council.

"We are proactive about community safety and supporting our local businesses," he said.