The two-time rowing silver medallist said aquatic sports could be banished from the lake within two years unless the water crisis is resolved.

His grim predictions come as the lake plummets to 700mm below capacity - one of the lowest readings in more than 20 years.

"This is my backyard, I'm passionate about this lake. It's given me three Olympic Games - and it's dying," Mr Edwards said.

The rowing legend said the situation was so dire, he would be forced to move away from Ballarat if he decided to contest the Beijing Olympics in 2008.

"I'm serious - I can't train on this lake as it is now, there are too many weeds, it's too shallow - I just haven't got the room to train."

Mr Edwards is Ballarat Grammar School's rowing director, and said the conditions were a safety hazard for student rowers.

He is also concerned the situation will jeopardise the city's chances of producing world class rowers.

"If we can't provide a good opportunity for them to train, then the great tradition of Ballarat's sporting athletes just deteriorates," he said.

Mr Edwards has been keeping a record of Lake Wendouree's "downward spiral" and said eight inches of water have disappeared from the lake since November 30.

A report outlining options for Lake Wendouree's replenishment will be completed by consultants TGM Group next Thursday.

Mr Edwards said the solution is likely to be expensive but added he would even support a special rates levy if it meant preserving Lake Wendouree - reputedly worth $39 million to the city.