The Minister for Energy and Resources, Ms Candy Broad, said the Ballarat Fish Acclimatisation Society hatchery was a living monument to the history of trout breeding and fishing in Victoria.

She said the society was founded in August 1870 and had continuously produced trout to stock public and private waters throughout the State.

In providing the grant, the Government promised to purchase fish from the hatchery for the first time in a number of years.

The money will be used to build an additional two raceways at the hatchery so it could maintain trout capacity.

The society is also producing a business plan to help provide details of the future management of the hatchery.

Society president Geoff Cramer said he was pleased the trout hatchery had been recognised by the Government.

The society has been recovering from a disastrous toxic chemical spill that was inadvertently pumped into hatchery ponds in May last year. This placed the future of the 130 year-old site in doubt.

The toxic spill also contaminated water in Lake Wendouree, killing thousands of fish including trout donated to the City of Ballarat by the society.

Every year it donates 8,000 trout to the council to top up fish levels at Lake Wendouree.