The $3.9 million project had been held up by a Victorian Civil and Administrative Tribunal hearing, which has now been abandoned.

That has allowed Wangaratta Council to sign-off on a planning permit for the project, which is expected to take 12 months to complete.

North East Water managing director Craig Heiner said the waste water project would provide a “sustainable, long-term solution for Glenrowan”.

“It will bring an end to the use of septic tanks, resulting in wastewater management complying with environmental standards,” Mr Heiner said.

“We’re now liaising with several contractors to arrange start dates and residents will be informed once a construction program is finalised.”

A Glenrowan resident had raised concerns about the project centred on issues such as the impact of construction traffic passing houses.

As a result of this, North East Water mediated a solution that keeps residents happy and which will include the erection of screening at work sites.

Glenrowan Improvers Group member Linton Briggs said the community advocate organisation was “fed up” with the delay but was “delighted that the project is now going ahead”.

“It’s great news for the town and will enhance the town’s residential amenity no end,” he said.

The VCAT hearing had been due to go ahead earlier this month.

Mr Heiner said North East Water thanked the Glenrowan community for its continued patience over the delays, and welcomed the continued support of the Glenrowan Improvers Group.

The project has been split into three components.

The first is the building of a sewer network that involves the laying of pipes along road reserves in Glenrowan.

A wastewater treatment plant will be built at an existing North East Water storage site in the town.

Thirdly, a subsurface irrigation system will be built, the aim being to use reclaimed water for agriculture.

The project is part of the state government’s Country Towns Water Supply and Sewerage Program.