Bungaree and Wallace could die "a slow death" without a connection to a sewer network, according to a new push from Moorabool Shire Council.
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The small towns, a stone's throw from Ballarat, still rely on septic tanks to manage wastewater.
Council released a video this week featuring long-time residents calling for action, supporting a broader campaign to build a modern sewer network and encourage sustainable growth.
Bungaree's Andrew Mahar said in the video the area needed to grow.
"We've got schools that will close, we've got all this infrastructure in place, the backbones of a great town," he said.
"If we don't get these sewers and infrastructure through to sustain these towns, they'll die."
Craig Wilson and his wife have owned the Wallace Hotel for 11 years - he said the townships would struggle to survive without a sewer system.
"It's 2021; not 1921," Mr Wilson said in the video.
"Having a sewer system is really an essential part of what people want in their lifestyle."
Jo Frawley has lived in Bungaree for 22 years, and grew up just outside Wallace.
She said the community calling out for more members - modern sewerage infrastructure would help attract more people to the town, which would not just include economic benefits.
"Our community relies on only a few people to keep all of our fire station, recreation reserve, schools, churches running - there's very few people to go around to help keep these things up and running, and that's been a difficulty for the last few years," she said.
"That's because of the number of people who are able to live in the community."
The growth spreading eastward from Brown Hill was noticeable, she added, as well as Ballan's continued expansion.
"People who haven't had the opportunity to live in the town they've grown up in, that was a major obstacle, there's just not the housing for people who want to live where they grew up," Ms Frawley said.
"It's a very tight community, an amazing community that looks after each other, and it would be nice to have more people to share that with."
In a Moorabool Shire Council media release, mayor Tom Sullivan urged residents to contact state politicians so they can "appreciate how much local support there is for this project".
"It has strong community support, it ticks a lot of boxes," he said.
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"It allows growth that will actually take pressure of other communities as well.
"Council is committed to partnering with Central Highlands Water and others to make this happen."
The media release states council is writing to the Acting Minister for Water Richard Wynne seeking his support for the project.
Council has already allocated $1 million to the project.
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