Wastewater management issues that in part shut the gates of the Tawonga caravan park will soon be resolved.
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Detailed planning is starting after the Victorian government announced in May there would be $2.1 million to upgrade the site.
Operators had their lease with the Department of Environment, Land, Water and Planning coming to an end in May and significant funding was required to fix infrastructure, including a failing septic system, before a new lease could be advertised.
The need was raised by Alpine Council with Premier Daniel Andrews directly in March but the park did shut in May.
Chief executive Charlie Bird said council was looking forward to carrying out vital upgrades to the park.
"These works will ensure the park can reopen and operate safely into the future, helping to boost the local visitor economy and adding to the accommodation offering in the Kiewa Valley," he said.
Alpine Council will be appointed as the new committee of management of the park once all caravans and annexes have been removed from the site, and council will oversee project upgrades.
The park will remain closed until these upgrades are completed.
DELWP regional director Clare Kiely said the update would be welcome news to the community.
"Everyone recognises the important role the park plays within the local community and we are all working together to complete the upgrade and reopen the park to visitors," she said.
"We would like to thank the community for their patience and support while we have secured funding and worked through the planning process.
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"We would also acknowledge the owners of caravans who have removed their property from the park in preparation for the works to commence."
The $2.1 million upgrade of the park includes connection of the septic system to the town's sewerage, as well as other important facility upgrades.
Detailed construction designs are getting underway with the start of on-ground works expected within the first half of this year.