People in the town of Trentham can now drink water from their taps again, after Coliban Water confirmed on Saturday night the water supply was safe.
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Residents had been advised not to drink tap water in the town on Thursday after wild storms hit the region.
A burst water main, which was the cause of concern about water quality, was located on Saturday afternoon and isolated for repair.
Coliban Water said water testing confirmed the water supply was safe.
It is recommend residents flush internal taps for two minutes to draw fresh water into their internal plumbing before use.
A Vic Emergency statement said Powercor crews restored power to most parts of Trentham township on Saturday afternoon and were working to restore power to remaining areas.
Trees had fallen across power lines during the storm on Wednesday night and Thursday causing widespread outages.
The statement said Powercor was working to restore power to the community of Blackwood in the coming days.
Residents who are experiencing power outages are advised to turn off and unplug electrical appliances to prevent damage in case of a surge on reconnection.
Mobile outages are widespread in the area and it is unknown when full services will be restored.
Information from Vic Emergency says people who are not from Trentham and surrounding townships should not enter the area and people are advised to avoid travel if possible.
"If you need to travel as a last resort be aware there may be water over roads, trees down, debris and landslides and adhere to reduced speed limits for your own safety," the statement says.
"Keep safe by avoiding fallen powerlines."
A relief centre at Trentham Mechanics Hall is providing residents with assistance, bottled water and information.
Daylesford-Trentham Road between Musk and Kyneton remains closed and is expected to reopen by June 19.
Myrniong-Trentham Road between Trentham and Blackwood remains closed and is expected to reopen by June 16.
The Wombat State Forest has been temporarily closed to avoid the risk of falling trees and to allow crews to clear tracks.
Trentham Falls and Lerderderg State Park is also closed.
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