Authorities are investigating if soil transported from an old petrol station at Daylesford to other properties in the town is contaminated.
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The Environmental Protection Authority is investigating if soil sourced from the Midland Highway property, which is currently being upgraded to a Metro Petroleum outlet, is contaminated.
Earlier this week, EPA officers travelled to the town - with a reputation for leading the way with sustainability initiatives - and conducted soil testing at the Midland Highway site.
They also inspected two other properties where soil from the petrol station site had been deposited.
It comes after community members raised concerns after learning soil from the site had been transferred to other locations around their town.
Daylesford resident, Dr Patrick Jones, was extremely concerned when he first became aware that soil from the petrol station had been transported to other residential locations.
"The smell of petrochemicals has been wafting over the neighbourhood," he said.
"We residents want to send a clear message to contractors from other centres - you're being closely watched."
A developer whose land was inspected in relation to the investigation earlier this week, who asked not to be named, told The Courier that his contractors required soil for the development.
Looking to source it locally, they did so from the Midland Highway site but he said they were assured it was clean fill.
He said everything had been done above board and they were paying for a certificate to prove the soil was clean.
IN OTHER NEWS:
Hepburn Shire Council chief executive, Evan King, said council was aware of the matter and was also investigating the concerns which had been raised.
"Council is also working with the EPA to ensure the safety of our residents," he said.
The test results should be available within weeks.
The owner of the service station was contacted for comment.
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