The regeneration plans of the Pyhäjärvi town centre were prepared as part of a joint project organised by the University of Oulu and Pohjois Pohjanmaan Liitto (a regional planning body). The project team included representatives from the Pyhäjärvi council, cultural organisations and local businesses. A public consultation was held at an early stage of the plan development.

The central focus of the plan was a new central square which connects the town centre both in terms of its uses and movement. As well as functioning as a market place, the area can be used for larger events (especially in the summer months) by closing down the street that crosses the southern part of the square and redirecting the traffic to the new bypass. The new bypass also connects the coach-station with the town centre and significantly improves the legibility of the area. The market place also functions as natural traffic calming as it extends over the main high street at a raised level. A new pedestrian path is built to create a direct and clear connection from the town centre to the lake.

The plan will be implemented in three phases: The first phase includes the new square and streetscape improvements as well as the path to the lake. The second phase includes two new buildings which help frame the new central square and reinforce its role as a market place. The third phase takes a longer term view of how the structure of the town centre area should develop: New apartment buildings which enable people to live in the centre near the services are important for the future viability of the centre. The layout suggested in phase three aims to improve the fragmented streetscape and strengthen legibility in the town cetre.

The plans are currently being implemented by the local authority.