North East Water wants to demolish the 105-year-old Wahgunyah water tower designed by Sir John Monash because of fears for public safety.
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The water tower, named "Standpipe", is over 18 metres tall, but is no longer of use to NEW.
It is estimated to only have 15 to 20 years of life before it would need $130,000 to last another 10 years, which Indigo Council planning manager Ian Scholes has described as "exorbitant".
In a report tabled for councillors to consider at Tuesday's meeting, Mr Scholes recommended they approved the application to demolish the tower.
There was one objection to the proposal, which argued that because it was designed by John Monash, the tower was historically significant to Australia, and one of the few remaining heritage items in Wahgunyah.
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Mr Scholes said the tower could not be described as rare because there were six others of its kind still standing in Australia.
"Physical separation from the water tower to the rest of the town has removed much of the context of the heritage item, and left a seemingly random disused concrete utility in the middle of a dense residential area," he said.
"It is clear that without significant early intervention the structure is highly likely to become hazardous to surrounding properties and public safety."
The council also has an application for a three-lot subdivision on adjoining land, meaning the site of the water tower is likely to become the front yard of a dwelling in the future.
