Doctor Damian Heman heads the group and started a petition last month in opposition to North East Water's plan to build new water infrastructure on the west branch of the Kiewa River, as he was concerned the vast majority of the community hadn't been adequately informed about the project.

Within 48 hours it had more than 500 signatures and sits at almost 900.

North East Water outlined the proposed works will consist of a small weir in the West Kiewa River to replace the existing infrastructure higher up the Kiewa River built in the 1970s and secure Mount Beauty's water for a growing population until at least 2060.

The weir aims to ensure adequate water levels during low flow periods, but also includes a fish passage structure, a pump station located in a building adjacent to the river, and a new pipeline along Embankment Drive to connect the existing water supply pipe to the water treatment plant.

North East Water believes the proposed site is the best location for uninterrupted water extraction as it is downstream of AGL's hydroelectricity operations and has guaranteed river flows.

Community representative Sarah Gamble said the town hasn't denied the need for the new infrastructure, but has questioned its location as the proposed site is central to the primary tourist precinct, metres from the caravan park, and part of the recreation area used by residents every day.

"It's for adequate drinking water based on population growth until 2060. It's also to have enough water for bushfire fighting," Ms Gamble said.

"We love that both of these important factors are in planning, but higher up the Kiewa we have the most pristine water. By the time it gets down here with stormwater run-off and then sits stagnate in the pondage, where during summer we have boats and all sorts of water activity, it's not going to be the greatest drinking quality."

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The area is a rapidly evolving community and tourism precinct, with hours of volunteer labour having gone into beautifying the area in recent years, with the addition of exercise equipment and an extension to the riverside trail.

Ms Gamble said there's also been concerns about the noise the pump may create, as well as the additional requirements to provide vehicle access and fencing around the building to house the station.

The group has considerable knowledge of the area and wants to partner with North East Water to consider other options to find the best solution for the town, for resident and tourists.

"The main thing we're asking of North East Water is just to be open-minded," Ms Gamble said.

North East Water managing director Craig Heiner said the community's concerns have been taken on board and the project won't progress further until there's been an opportunity to consult and consider alternatives.

"This is an important project focused on increasing the town's bushfire resilience, as well as addressing staff safety and ageing infrastructure risks," he said.

"We have always intended to engage further on our plans but have been hampered by the recent lockdowns.

"We are now working through the town's feedback and are internally reviewing our options to consider how we can incorporate community concerns and values into the project."

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