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Sutherland Shire's third Walk the Walls street art festival will be held in Cronulla from December 9-11.
Unsightly graffiti will be replaced by colourful murals, painted by some of Sydney's leading street artists.
Sutherland Shire Council has been awarded an $88,500 graffiti management grant by the state government. Six other councils have also been awarded grants.
Mayor Carmelo Pesce said negotiations were being held with building owners about sites for the art.
Cronulla MP and Attorney-General Mark Speakman said the grant under the Graffiti Management Program followed "hugely successful festivals" in Caringbah in 2018 and Cronulla in 2019.
Six other councils have also been awarded grants.
"We know that revitalising unused spaces increases perceived public safety, creates community pride, and lowers the incidence of crime including graffiti," Mr Speakman said.
"However, a 'one size fits all' approach isn't always the best response.
"The Graffiti Management Program draws on local knowledge and expertise to build tailored projects for local councils, with the aim of reducing incidents of graffiti.
"Great street art is a legitimate way to beautify and revitalise public spaces. It can bring communities together, mark significant moments in time, inform, inspire, and lead people to think in new and different ways about a variety of subjects.
"This isn't just art for art's sake. Projects like the Walk the Walls street art festival add to the local environment in a way that the community can enjoy, create opportunities to bring people together and even boost the local economy."
The objectives of the Graffiti Management Program include preventing and minimising graffiti vandalism and reducing the social, environmental, and economic impact of graffiti vandalism.
Sutherland Shire mayor Carmelo Pesce said the initiative was "a fantastic way to reinvigorate some of the most frequented local public spaces".
"The Walk the Walls festival has been a real highlight of the local social calendar in previous years, and I know local residents are excited about seeing it back in action, adding a splash of colour to Cronulla this year," he said.
"This event not only draws out some top artistic talent, but also offers our community a great chance to come together to see some of our best loved public spaces as they are transformed with some eye-catching artworks.
"Not only does Walk the Walls add a real buzz around our community while the event is underway, it also provides a lasting benefit by beautifying some of our most popular urban centres and providing a real point of attraction for locals and visitors alike."