More than 26,000 pine trees on former plantation blocks near Gordon could be cut down if a permit is approved.
The regrowth trees are in two blocks north of the Western Freeway on either side of Abbington Park Road.
The permit application, submitted to Moorabool Shire Council, states all non-native trees would be removed, including stumps.
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Hay would be placed along the edges of waterways to prevent silt flowing into the water.
Kruger Solutions Forestry operations manager Randall Ford said if approved, the landowner is planning to build a house on the block.
"It's an old plantation, and this is regrowth - so we'll harvest and process it for domestic use," he said.
"We'll mill up what we can, and chip the rest for garden mulch."
The blocks will then be reseeded to return it to pasture and native vegetation.
"(This) will improve the value and natural beauty of the area while and removing potential fire risk," Mr Ford added.
"The timber will all be harvested."
Mr Ford also pointed out the work will "remain local".
"We specialise in small private blocks or plantations, we have our own sawmill and chipping plant - we're based in Ballarat, and we're hoping to develop that further," he said.
"This stuff isn't going to China export, we're supporting local jobs."
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A Moorabool Shire Council spokesperson said a decision is not likely to be made on the application until February.
"The application has been referred to the relevant catchment authorities for comment. They have 28 days to respond," they said in a statement.