Ninety-four trees will be removed along the Yarrowee River to complete much-need sewer works, according to Central Highlands Water.
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A specialist landscape architect has been employed for the recovery stage post-construction.
The works, from White Flat Oval along the river to Humffray Street South, are part of a $25 million once-in-a-century upgrade, which aims to double the current network's capacity.
The new infrastructure runs underground parallel to the existing lines, but is much bigger, and will link into the network upon completion.
A media release states the final alignment of the sewer was moved to avoid the removal of 150 trees.
According to a map posted by Central Highlands Water, the works will follow the western side of the Yarrowee, crossing over at Hill Street past the old Ballarat Woollen Mill site to follow Humffray Street South, going underneath the Mount Pleasant Reserve, then crossing back to the western side of Humffray Street South at the Elsworth Street West intersection.
The first stage of the upgrade, which cut through the CBD along Peel Street and Eastwood Street causing some traffic disruptions, was completed last year.
After the six-kilometre southern stage is finished, a final stretch will be completed along Morres Street to the Brown Hill Reserve.
Works on stage two are expected to take several months - CHW confirmed some temporary paths may be built during construction for walkers, runners, and cyclists.
Sporting clubs in the White Flat oval area will still be able to use their facilities during construction, it adds, despite a construction compound being set up there this week.
In a statement, Thomson Hay Landscape Architects' David Hay said there will be new paths and seating built as part of the post-construction works, while CHW's capital delivery and networks general manger Stephen Answerth said any suitable trees and branches will be donated to the Ballarat Wildlife Park.
"Our team has worked with community interest groups, arborists, vegetation experts and landscape architects to develop plans to ensure any trees that do need to be removed are used sustainably, sensitively and with the community and wildlife in mind," he said.
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"Suitable gum tree branches and leaves will be provided to Ballarat Wildlife Park to use as feed, and tree trunks will be milled by Talbot Timbers, before being donated to local community groups for use by their members.
"Several trees, affected by the works will be retained and converted into habitat trees, with limbs, mulching and planting places around them, to encourage wildlife use."
Stage two construction is set to begin this week.
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