The State Government's Public Utilities Office, Western Power and the Shire of Kalamunda are working together on the State Underground Power Program (SUPP).
Shire of Kalamunda chief executive Rhonda Hardy said the upgrade to the power infrastructure in the town centre was an important project.
"It is the first step toward making improvements to the town centre which will have a positive impact on the main business district of the town," she said.
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READ NOWThe project has included a new street lighting system which is currently being installed.
"Around 10 per cent more lights are being installed, with the old overhead system removed completely," Ms Hardy said.
"The new lights are more closely spaced, generally alternated from one side of the road to the other, and placed around a metre from the kerb to provide more light to the road.
"The steel light poles are designed to collapse when hit by vehicles to reduce damage and injuries."
Western Power expects the project to be finished in September.
A spokesperson for Western Power said it had taken longer than expected but with the drilling work now complete the project was progressing through to the final stages "very nicely".
The final stages of the project will be completed over the next few months. All old poles will be removed.
The expected benefits of the project include fewer blackouts during bad weather, an improved visual appearance, improved property values and reduced street tree pruning requirements so trees can grow to their natural height and shape.
The new lighting system is expected to provide brighter, safer and more evenly lit streets.
There are also plans to review drainage in the town centre.