Councillors voted in favour of pushing on with the project after mayor Daniel Moloney brought the matter up as part urgent business following the resounding defeat of a recision motion by central ward councillor Samantha McIntosh.

Council noted preliminary guidance from Heritage Victoria that the existing heritage permit regarding portion of the project on the western side of the lake near the Ballarat Botanical Gardens remains valid and outside the interim protection order which was originally placed on the site, allowing the project to move forward.

Council will also apply for a heritage permit for the remaining section of the lake as soon as possible in order to complete the project while an interim protection order is in place around the lake.

As part of the motion, council will also seek guidance from Heritage Victoria regarding the interim protection order regarding exempt activities such as events and maintenance around the lake.

Councillors voted seven to two in favour of moving forward with the project after Cr McIntosh's recision motion was defeated eight to one.

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Councillor Mark Harris joined Cr McIntosh as the two votes against the motion to move forward with the project.

Last month, council voted six to three in favour of awarding the tender for the project to Bendigo-based De Araugo and Lea Electrical Contractors.

An interim protection order was placed on the lake by the Heritage Council of Victoria on Tuesday, essentially pausing the project as works are now unable to be done around the lake without a heritage permit from Heritage Victoria.

Councillors shared the opinion that the recision motion was unnecessary as the opinion of councillors had not changed since they voted to award the tender and there was no discussion of the tender itself during the debate on whether to rescind the awarding of the tender.

In moving the recision motion, Cr McIntosh said more consultation should have been done to ensure the community was happy with the project.

"We need to get the job done. We want to deliver beautiful projects for our city's future. We want to get the job done right and we want to get the job done in a reasonable matter of time," she said.

Voting against the motion, north ward councillor Amy Johnson said while she disagreed with the design of the lights and voted against awarding the tender, she believed the recision motion was 'nonsensical'.

"I know Cr McIntosh's heart is in the right place but I believe putting this forward is nonsensical because the numbers in the councillor room haven't changed," she said.

"I don't see that tonight achieved anything and it put members of the public through stress and false hope. I think that is a pretty poor use of resources."

In moving the final motion to get on with the project, mayor Daniel Moloney said the intention was to commence works as soon as possible.

"The rationale exists, we already permit for the most heritage significant part of the lake, to not have a permit to cover the rest of it is monumentally ridiculous," he said.

"I'm quite staggered that the Heritage Council of Victoria has issued an IPO when we've already been issued a permit for the most significant part. It seems like a bizarre administrative situation."

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"I'm also somewhat dismayed at the careless regard for the boatshed owners throughout the area and I hope there can be some exemptions for them as well because, unfortunately, all of the boatshed owners are also going to be encountering significant time and costs."

Lighting the lake was first identified as a council priority in the Lake Wendouree Master Plan, which was endorsed by councillors in 2015 and received widespread public support with 81.7 per cent of 1800 respondents to consultation in favour of the project.

The project has also previously received a planning permit following a council vote and a heritage permit from Heritage Victoria for the portion of works to take place in the Ballarat Botanical Gardens area.

Plans for the project include the installation of 225 five-metre-tall light poles around the six-kilometre Steve Moneghetti Track and seven along Morrison Street connecting with Victoria Park.

The project is state government-funded after receiving bipartisan support during the 2018 state election campaign.

Council officers have previously said the light poles were the best option for lighting the lake, with bollards to require three times the amount of lights, cost significantly more and be more prone to vandalism.

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