But the Mornington Peninsula could also become well known as a hot springs hot-spot, where people could choose from a range of hot, mineral-rich pools to visit and relax in, if current plans for an auction of "hot" underground water come to fruition.

Investigations of the aquifer that lies deep underneath the peninsula, part of the so-called Werribee Formation, have found that 4000 megalitres of hot water (equivalent to 4000 Olympic-size swimming pools) could be sustainably harvested each year, according to the water company responsible for local groundwater management, Southern Rural Water.

This number includes the "hot water" currently extracted under licence on the peninsula, said Craig Parker, the water corporation's general manager of groundwater and rivers.

According to the Mornington Peninsula Shire there is only one thermal pools centre currently operating in the shire using hot water from the aquifer, the popular Peninsula Hot Springs centre at Fingal, which describes itself as "the first natural hot springs and day spa centre in Victoria". But the shire is assessing three applications for new "hot spring developments".

The hot water, or "geothermal water" underneath the peninsula lies at a depth of about 500-1000 metres and is about 46 degrees celsius when it gets to the surface, according to Southern Rural Water.

Mr Parker said the water was part of a sedimentary basin that extended from Ballan, north west of Melbourne, and underlies much of the Port Phillip Basin, including Port Phillip Bay. "It's held within pockets within rock and sand sediments," he said.

The first-ever Victorian auction of geothermal water to be used for hot thermal pools could be held as early as next year. But it would not be the first auction of water in Victoria: a small number of auctions have already been held for the use of water in agriculture.

"Southern Rural Water has successfully conducted auctions of water online using a system that works like eBay," Mr Parker said.

"State policy supports the auctioning of water so that everyone has a chance to obtain a licence and to create a market for water. The auctions are only open to businesses that meet pre-approval requirements, including that they have a property in the area designated for the sale of licences," he said.

Mr Parker said there was "a fair bit of interest from other businesses" in using the "hot water" underneath the peninsula.

"We say there's 4000 megalitres available [per year] on a sustainable basis, and at the moment that is not all allocated. So there is capacity to issue more licences on a sustainable basis," he said.

Mr Parker said 4000 megalitres was "a fairly substantial volume of water". A legal matter had to be resolved before a "hot water" auction could be held, he said, but if the legal matter was resolved and the auctions could be held, "we'll be moving as soon as possible after that".

Alison Leighton, chief operating officer at the Mornington Peninsula Shire, said various approvals were required to operate thermal pool centres "including town planning permission, building regulation permission (normally provided by a private building surveyor), health permits, road access permission and then other permissions from the water authorities."

Asked about the prospects of the peninsula becoming a hot springs hot-spot, she said: "The natural beauty and character of the Mornington Peninsula's coastal and hinterland areas are treasured by locals and visitors alike. Interest in the use of the geothermal resources on the peninsula is certainly growing and whilst this is seen as a positive development, care will also be taken to ensure that the unique character of the peninsula continues to be protected."