The "biggest building in town at the top of the main street" has recently undergone a $250,000 upgrade.

Now the large "Town Hall" letters, believed to have been taken down from the front of the building following Gerringong council's merger with Kiama in 1954, are set to return to the building.

According to the Gerringong and District Historical Society, the letters were removed from the building as it was no longer "officially" used for council purposes.

Kiama councillors last month backed calls from Gerringong's South Precinct committee to investigate having the letters restored to the building, perhaps replacing the clock, which has a reputation for giving an incorrect time.

Far from being an attempt to start a "secessionist movement", the South Precinct committee said it was a pragmatic issue of helping visitors to Gerringong easily locate the building.

In a report to be presented on Tuesday night, Kiama Council's director of engineering and works Bryan Whittaker said the building had always been known as and referred to as the Gerringong Town Hall "and there seems to be no compelling reason not to identify it as such by the reattachment of the lettering on the facade".

"This will not only assist those from outside the local area not familiar with the site to actually find the building, but will also pay respect to its historical significance and heritage nature," Mr Whittaker said.

The cost of lettering installed is estimated to be $600 with a further $200 for the relocation of the Town Hall clock and can be accommodated in the council's buildings maintenance and improvements budget.

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