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The library will become a ''community hub'', following a survey of local residents.
Suggestions made in responses to the survey - including extending the opening hours of the library, introducing computer and IT classes and developing school holiday programmes - will be followed up this year, Waitaki District Libraries Manager Philip van Zijl said.
To help extend programmes, librarians would come regularly from Oamaru to Palmerston to work with pre-school groups and youths, he said.
Fiona Kerr had already been making regular visits from Oamaru library to work with young people at the Palmerston library.
Layout changes at the Palmerston library had already started and training for the Palmerston staff would enable them to actively engage with readers rather than just issuing books, Mr van Zijl said.
Some of the older furniture would be replaced.
Costs for the furniture and new signs at the Palmerston library would be covered by the Waitaki District Libraries budget.
Requests for books sought by Palmerston readers and not available in Palmerston could be emailed to Oamaru and would be couriered down by Waitaki District Council staff.