A $180,000 federal government National Water Infrastructure Fund grant is crucial to forming a plan on using Avoca resources to help create a reticulated water system for the Moonambel area.

Pyrenees Shire Council completed a feasibility study into the project last year, which would cost an estimated $7 million but improve water services the Moonambel region.

Recently, the shire partnered with Visit Ballarat to boost its tourism sector towards Ballarat and Melbourne – with wineries and vineyards a vital feature of the region.

Pyrenees Shire Council mayor Michael O’Connor said planning will begin as soon as possible, but said more funding is required, with the strategy expected to cost about $260,000.

“We’re trying to get $50,000 from state government (as well),” Cr O’Connor said.

“For us it’s a key project. We’d love to start yesterday.

“It’s critical, Moonambel is a central point in our winemaking and tourism areas.”

Council has allocated $30,000 for the plan.