FRASER Coast Regional Council has given the thumbs up for free overnight camping in a sleepy Queensland village.

Work on the 48-hour rest area in the centre of Bauple, north of Gympie, is expected to begin this month after councillors unanimously gave their approval.

A council report said it had "a high level of public support" and would allow self-contained caravans and other RVs to stay overnight in the village, but there would be no toilet facilities.

It said caravans and RVs would be allowed to camp at the carpark area of the nearby Bauple Sport and Recreational Grounds "until such time as the site is operational".

A huge brightly painted sign has already been erected at the side of the Bruce Highway inviting travellers to stay awhile.

The council had originally recommended a site outside the picturesque village, once renowned for its fairy grotto, but has bowed to pressure to provide the rest area in the heart of the village, population about 400.

Macadamia farmer Marc Bromet, who runs the village's only shop with daughter Yoldande, believed the facility would help make the village sustainable.

"I think the bulk of the community and community organisations want RVs ... and they want the site in the township, not on the highway. They want an unhook-and-look site," he told Caravanning News.

And Yoldande said: "The majority of the community and community groups have welcomed the decision. Like any new facility, any further development will depend upon its usage."

The site was on the first tourist route north in the Fraser Coast and would be called Bauple Fraser Coast.

"It was appropriately named by Cr Les Muckan, the first indigenous councillor in this region," she added.

Council chief executive officer Lisa Desmond said the authority valued the "positive economic impact" visiting caravanners had to the region and wanted to encourage them to spend more time exploring the area.