title: Amendment C78 - Small Towns and Settlements Strategy council: moorabool state: vic category: amendment classification: MAJOR status: approved last_compiled: 2026-05-31 source_docs:
- agenda-s86-moorabool-growth-committee-12-09-18.pdf
- agenda-s86-rural-growth-strategy-committee-220318.pdf
- small-towns-and-settlements-strategy-final.compressed.pdf
- sts-part-b-final.compressed.pdf
Amendment C78 - Small Towns and Settlements Strategy
Amendment C78 converted the 2016 Small Towns and Settlements Strategy from a council strategy into a planning-scheme reference and Municipal Strategic Statement direction for Moorabool’s smaller settlements (Source: agenda-s86-moorabool-growth-committee-12-09-18.pdf, p.61). Its practical effect was not to create immediate broad growth fronts, but to establish a hierarchy of settlements where any additional housing, services or public realm work must be tested against sewer, water, catchment, bushfire, agricultural and infrastructure limits (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.73-80).
The amendment matters because the strategy identifies only four small towns - Bungaree, Dunnstown, Myrniong and Wallace - as having long-term growth investigation potential, and even those are conditional on reticulated sewerage or other wastewater solutions (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.7-8; Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.84-85). For the rest of the settlement network, the dominant planning direction is consolidation, character protection, service clustering, heritage work, bushfire caution and township improvement rather than urban expansion (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.78-80).
Background
C78 sits inside Moorabool 2041, the council’s strategic planning program for growth and development through to 2041 (Source: agenda-s86-moorabool-growth-committee-12-09-18.pdf, p.61). Moorabool 2041 was used as an umbrella for several strategic documents, including Housing Bacchus Marsh to 2041, the Small Towns and Settlements Strategy, Ballan Strategic Directions and the Bacchus Marsh Urban Growth Framework (Source: agenda-s86-moorabool-growth-committee-12-09-18.pdf, p.61).
The strategy responds to an uneven growth pattern across the Shire: Bacchus Marsh was described as exceeding 18,000 residents, Ballan as exceeding 3,000 residents, while many western small towns and settlements had 200 or fewer residents and had experienced little growth or population decline (Source: small-towns-and-settlements-strategy-final.compressed.pdf, p.6). The document frames this as a network problem rather than a simple land-supply problem, because Bacchus Marsh is increasingly influenced by metropolitan Melbourne, while western Moorabool towns sit within Ballarat’s service and employment orbit (Source: small-towns-and-settlements-strategy-final.compressed.pdf, p.6).
The strategy considered 16 settlements in detail: Balliang, Balliang East, Barkstead, Blackwood, Bungaree, Clarendon, Dales Creek, Dunnstown, Elaine, Greendale, Korweinguboora/Spargo Creek, Lal Lal, Mount Egerton, Myrniong, Wallace and Yendon (Source: sts-part-b-final.compressed.pdf, pp.1-2). Gordon and Ballan were not treated as part of C78’s small-town growth framework because Gordon was being managed through a separate structure plan and Ballan through its own strategic direction process (Source: agenda-s86-moorabool-growth-committee-12-09-18.pdf, pp.61-62).
Analysis
Statutory Mechanism And Planning Effect
C78’s core statutory mechanism was to update the Municipal Strategic Statement to reflect the Small Towns and Settlements Strategy and include the strategy as a reference document in the Moorabool Planning Scheme (Source: agenda-s86-moorabool-growth-committee-12-09-18.pdf, p.61). That means the strategy became a planning-policy input for decisions about future structure plans, settlement boundaries, local policy changes, township design work and infrastructure advocacy, rather than a document sitting outside the planning scheme (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.9-10).
The amendment did not itself sewer towns, rezone all potential growth land or approve new settlement expansion areas (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.78-80). Instead, it created a decision sequence: identify which towns warrant future investigation, test wastewater and water feasibility, prepare business cases with water authorities and affected landowners, then proceed to structure planning only where the infrastructure case can support the land-use change (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, pp.3-4; Source: sts-part-b-final.compressed.pdf, pp.96, 179-180, 487-488, 525-527).
This mechanism is important because most smaller Moorabool settlements are not constrained by a single issue; they are constrained by combinations of small population catchments, water-supply catchments, lack of sewer, limited public transport, bushfire exposure, heritage values and productive agricultural land (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.12-15; Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.55-56). C78 therefore works as a triage amendment: it separates settlements where future growth investigation is strategically plausible from settlements where amenity, tourism, heritage or service improvements are the more realistic planning pathway (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.73-80).
Settlement Hierarchy And Growth Allocation
The strategy’s hierarchy creates four categories for Moorabool’s small settlements: consolidated growth investigation towns, incremental change towns, consolidation towns, and rural settlements with very limited growth expectations (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.73-76). Bungaree, Dunnstown, Gordon and Wallace are listed as consolidated growth investigation small towns with an indicative population range of 800 to 2,000 people, although Gordon was separately addressed by its adopted structure plan (Source: small-towns-and-settlements-strategy-final.compressed.pdf, p.75). Blackwood and Myrniong sit in the incremental change category below 800 people, while Elaine, Greendale, Lal Lal and Mount Egerton are consolidation settlements generally around 200 to 500 people (Source: small-towns-and-settlements-strategy-final.compressed.pdf, p.75). Balliang, Balliang East, Barkstead, Clarendon, Dales Creek, Korweinguboora/Spargo Creek and Yendon are treated as rural settlements with populations below 200 in the hierarchy table (Source: small-towns-and-settlements-strategy-final.compressed.pdf, p.75).
The hierarchy is not a growth target by itself; it is an infrastructure and role filter (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.73-75). The strategy says the hierarchy was influenced by local service role, existing sunk infrastructure, strategic location near investment-attractive corridors, community expectations, environmental constraints, critical mass for utility funding in potable water catchments and existing policy support (Source: small-towns-and-settlements-strategy-final.compressed.pdf, p.74). The practical effect is that a town with a school, recreation reserve and freeway access is treated differently from a dispersed rural settlement with no reticulated water, no sewer, high bushfire risk and no compact centre (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.73-76; Source: sts-part-b-final.compressed.pdf, pp.23-31).
The strategy forecasts the broader Rural West area supporting 7,366 residents by 2041, an increase of 1,851 residents, and it raises the unresolved question of whether forecast new dwellings will occur inside existing settlements or continue largely in Rural Living and Farming Zone locations (Source: small-towns-and-settlements-strategy-final.compressed.pdf, p.48). That is the central mechanism C78 tries to influence: without serviced and planned small-town capacity, rural residential pressure can be displaced into less orderly locations outside settlements (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.48, 83-85).
Sewer, Water And The Infrastructure Gate
Sewer and water are the binding constraints in C78 because many settlements are in proclaimed water-supply catchments and rely on on-site wastewater systems (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.6, 55-56). The strategy states that reticulated sewerage is not provided to any of the small towns and settlements considered, and that reticulated water is available only to a limited number of them (Source: small-towns-and-settlements-strategy-final.compressed.pdf, p.83). This means planning support for growth cannot be separated from water-authority capital works decisions (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.55-56).
The quantified infrastructure evidence is concentrated around Bungaree, Wallace and Dunnstown (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, pp.132-135). The 2017 committee report estimated a gravity sewer to Ballarat for Bungaree at 6,773,642 capital cost and 77,047 annual operating cost for a 1,000-person capacity (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, p.134). A combined Bungaree and Wallace gravity sewer was estimated at 9,212,452 capital cost and 143,249 annual operating cost, while a Wallace-only gravity sewer was estimated at 6,580,102 capital cost and 112,255 annual operating cost with qualifications about the methodology (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, p.134). Dunnstown’s sewer estimate was 2,769,299 capital cost and 20,000 annual operating cost, with a separate reticulated-water estimate of 1,739,000 capital cost and 70,200 annual operating cost (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, p.134).
The strategy records a broader cost range of 5.0 million to 7.2 million for Bungaree sewer and identifies Bungaree as the first likely candidate because it is close to Ballarat’s sewerage system and has a stronger initial business case (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.7, 55-56). The 2017 report sharpened that conclusion by saying pursuing more than one town at the same time was not economically feasible because two towns coming online together would likely dilute land demand and extend payback periods (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, p.133). This is a sequencing issue: if Bungaree is the first trunk connection, Wallace’s future servicing should be designed as a later extension rather than a separate first-stage project (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, p.134).
Myrniong has a different infrastructure pathway because wastewater management was identified as Western Water’s responsibility, and council officers expected that Myrniong would need domestic wastewater management plan work, septic audits and water-quality testing before it could become a stronger candidate for a future water-authority capital works plan (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, pp.4-5). The Part B assessment recommends full seasonal testing of Myrniong septic systems, a business case if contamination and intervention need are confirmed, and a structure plan only if Western Water agrees to include sewering in its five-year capital works program (Source: sts-part-b-final.compressed.pdf, pp.487-488).
Settlement-Specific Planning Consequences
Bungaree is treated as the first-order western growth investigation town because it has a 2015 population of 191 residents in 83 dwellings, a general store, petrol/post office function, emergency services, a primary school and a recreation reserve, while also sitting near the Western Freeway corridor (Source: sts-part-b-final.compressed.pdf, pp.49-52). The Part B assessment states that Bungaree’s ability to grow beyond its current population will largely depend on reticulated sewerage, and it identifies a possible structure plan only after a business case is finalised and accepted by affected landowners and Central Highlands Water (Source: sts-part-b-final.compressed.pdf, pp.52, 179-180). If that business case is not accepted, the fallback is an Urban Design Framework focused on sense of place, capital works priorities, design guidelines and local policy changes rather than growth zoning (Source: sts-part-b-final.compressed.pdf, pp.179-180).
Dunnstown is also a consolidated growth investigation town, with a 2015 population estimated around 200 to 220 residents and a settlement role linked to Ballarat proximity, school infrastructure, the Shamrock Hotel, a recreation reserve, Kryal Castle, quarry activity and agricultural production (Source: sts-part-b-final.compressed.pdf, pp.83-84). Its growth pathway is harder than Bungaree’s because it needs both reticulated water and sewerage, and because quarry buffers, heavy vehicles, productive agricultural land and potential flooding all affect the practical shape of any future structure plan (Source: sts-part-b-final.compressed.pdf, pp.87-91, 93-96). The assessment therefore requires land-capacity and yield analysis before a full structure plan, followed by a business case with Central Highlands Water and landowners (Source: sts-part-b-final.compressed.pdf, p.96).
Wallace has a 2015 population of 212 residents in 85 dwellings and is described as one of the more connected settlements because of its direct Western Freeway diamond interchange, reticulated water, gas supply and compact five-minute public-facility catchment (Source: sts-part-b-final.compressed.pdf, pp.171-173). Its constraint is that sewerage is not available and its future growth is tied to the timing and design of a Bungaree sewer solution (Source: sts-part-b-final.compressed.pdf, pp.173, 526-527). This creates a dependency chain where Wallace has strategic advantages but is unlikely to be the first serviced town unless a Bungaree-linked system is resolved (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, pp.133-134; Source: sts-part-b-final.compressed.pdf, pp.526-527).
Myrniong is positioned as an incremental-change town with reticulated water but no sewer, recycled water or natural gas (Source: sts-part-b-final.compressed.pdf, pp.157-158). The assessment identifies growth feasibility due to Western Freeway access and proximity to Bacchus Marsh and Ballan, but makes a structure plan conditional on sewer infrastructure or another acceptable wastewater solution (Source: sts-part-b-final.compressed.pdf, pp.478-489). The mechanism is therefore evidence-led: water-quality testing and a sewer business case come before any land-use expansion (Source: sts-part-b-final.compressed.pdf, pp.487-488).
Elaine is not treated as a major growth town even though it has a service role in the south-west of the Shire, a 2015 estimated population of 82 residents in 41 dwellings, a hotel, general store, fuel sales, recreation reserve, hall and Midland Highway exposure (Source: sts-part-b-final.compressed.pdf, pp.97-101). The strategy says Elaine’s more realistic role is a service hub with modest or stable population rather than promoted significant growth, because reticulated water and sewer would require substantial investment and the market case had not been established (Source: sts-part-b-final.compressed.pdf, pp.106-110). This also creates a cross-boundary service relationship with Meredith in Golden Plains Shire, which is identified as a higher-order nearby settlement and a possible partner in a cluster-service model (Source: sts-part-b-final.compressed.pdf, pp.97-104, 109-110).
Blackwood, Lal Lal and Mount Egerton illustrate the non-growth side of C78’s architecture (Source: small-towns-and-settlements-strategy-final.compressed.pdf, p.9). Blackwood is recognised for heritage, tourism and environmental values, but its expansion is discouraged because of extreme fire risk, special water-supply catchment constraints and the absence of reticulated sewerage (Source: sts-part-b-final.compressed.pdf, pp.33-49). Lal Lal is directed toward heritage, landscape and visitor management rather than expansion because of limited services, catchment issues, heritage values and extreme bushfire risk (Source: sts-part-b-final.compressed.pdf, pp.133-146). Mount Egerton is directed toward an Urban Design Framework, heritage work and village identity while expansion is discouraged due to lack of services, catchment location, bushfire risk and reliance on Gordon’s service catchment (Source: sts-part-b-final.compressed.pdf, pp.146-157).
Implementation Work Program
C78 created a long-term work program rather than a single capital project (Source: agenda-s86-moorabool-growth-committee-12-09-18.pdf, pp.61-62). The strategy identifies Settlement Improvement Plans for Balliang, Balliang East, Clarendon and Korweinguboora/Spargo Creek; Urban Design Frameworks for Elaine, Greendale, Lal Lal, Mount Egerton and Yendon; and Structure Plans for Blackwood, Bungaree, Dunnstown, Myrniong and Wallace (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.78-79). It also states that structure plans for Bungaree, Dunnstown, Myrniong and Wallace are unlikely to commence until formal decisions are made on reticulated sewerage (Source: small-towns-and-settlements-strategy-final.compressed.pdf, p.80).
The March 2017 implementation report shows this work had already moved into infrastructure advocacy and landowner testing before C78 was approved (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, pp.3-5). Council had consulted landowners in Bungaree, Wallace, Dunnstown and Myrniong about possible inclusion in future structure planning, and reported interest from three Bungaree landowners, two Myrniong landowners and one Dunnstown landowner, with no Wallace responses at that point but a prior positive Wallace response during strategy preparation (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, p.3). That consultation was used to reduce uncertainty before council advocated for sewer or committed significant resources to structure planning (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, p.3).
Current Status
At the March 2017 Rural Growth Strategy Committee meeting, C78 had been resolved by council for Ministerial authorisation and was awaiting authorisation (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, p.3). By the September 2018 Moorabool Growth Management Committee update, Amendment C78 had been approved by the Minister for Planning and gazetted on 31 May 2018 (Source: agenda-s86-moorabool-growth-committee-12-09-18.pdf, p.63). The amendment should therefore be treated as approved rather than merely pending, although the source set does not include the gazettal notice or final amendment ordinance (Source: agenda-s86-moorabool-growth-committee-12-09-18.pdf, p.63).
Dependencies
- Blocks: C78 does not directly block development, but its policy framework makes substantial small-town growth dependent on further structure planning, infrastructure business cases, water-authority capital works and settlement-specific constraint testing (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.78-80; Source: sts-part-b-final.compressed.pdf, pp.96, 179-180, 487-488, 525-527).
- Blocked by: Growth investigation in Bungaree, Wallace and Dunnstown is blocked by Central Highlands Water servicing decisions, viable funding models, special charge or agreement mechanisms, landowner participation and further structure-plan-level constraint work (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, pp.132-137). Growth investigation in Myrniong is blocked by water-quality testing, domestic wastewater planning and Western Water capital works decisions (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, pp.4-5; Source: sts-part-b-final.compressed.pdf, pp.487-488).
- Informed by: The strategy relied on the Central Highlands Regional Growth Plan, Moorabool West Small Towns Residential Assessment, Moorabool Small Towns Servicing Analysis, Central Highlands infrastructure work, community engagement and settlement-by-settlement Part B assessments (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.55-56, 85-86; Source: sts-part-b-final.compressed.pdf, pp.1-2).
- Implements: C78 implements the Small Towns and Settlements Strategy into the Moorabool Planning Scheme and forms part of the Moorabool 2041 rural growth framework (Source: agenda-s86-moorabool-growth-committee-12-09-18.pdf, p.61; Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, p.3).
- Conflicts with: The amendment manages tension between local growth aspirations, catchment protection, bushfire risk, agricultural land retention, quarry buffers and the cost of extending water and sewer infrastructure to small settlements (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.55-56, 83-85; Source: sts-part-b-final.compressed.pdf, pp.89-96).
Cross-Jurisdictional Links
C78 has a strong Ballarat relationship because western Moorabool settlements, especially Bungaree, Dunnstown and Wallace, rely on Ballarat for higher-order services, employment and potential sewerage-system connections (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.6-8; Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, pp.132-134). Dunnstown’s future is also explicitly linked to planning by the City of Ballarat along its Warrenheip growth front (Source: small-towns-and-settlements-strategy-final.compressed.pdf, p.7).
Elaine has a Golden Plains Shire relationship because Meredith, nine kilometres to the south, is identified as a higher-order nearby settlement with more services and a structure-plan-supported dwelling pipeline (Source: sts-part-b-final.compressed.pdf, pp.97-104, 109-110). The strategy suggests Elaine and Meredith could function as cluster settlements, which means service planning in Moorabool’s south-west cannot be read only within the municipal boundary (Source: sts-part-b-final.compressed.pdf, pp.103-104).
Water-authority geography is also central to implementation: Bungaree, Wallace and Dunnstown sit within Central Highlands Water’s area, while Myrniong is discussed through Western Water responsibilities (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, pp.3-5). These authority boundaries determine which five-year capital works programs matter for each settlement and therefore which infrastructure pipeline can unlock or defer structure planning (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, pp.3-5, 132-137).
Gaps In This Analysis
The source set does not include the final C78 amendment documents, explanatory report, ordinance clauses, panel or advisory committee material, submissions, or the Victorian Government Gazette notice for 31 May 2018 (Source: agenda-s86-moorabool-growth-committee-12-09-18.pdf, p.63). This limits the ability to verify the exact final planning-scheme wording inserted by C78, the full submission issues raised during exhibition, and whether any Ministerial changes altered the exhibited amendment (Source: agenda-s86-moorabool-growth-committee-12-09-18.pdf, pp.63-64).
The strategy also references supporting technical work that is not present in the manifest, including the Moorabool Small Towns Servicing Analysis, Moorabool West Small Towns Residential Assessment, Central Highlands Infrastructure Study, West Moorabool Heritage Study stages, Hike and Bike Strategy, and relevant water-authority capital works plans (Source: small-towns-and-settlements-strategy-final.compressed.pdf, pp.55-56, 85-86; Source: sts-part-b-final.compressed.pdf, pp.96, 109, 179-180, 487-488). Those missing documents prevent parcel-level yield analysis, final sewer alignment testing, detailed heritage-control analysis and confirmation of whether the 2017 sewer advocacy was later incorporated into Central Highlands Water or Western Water programs (Source: agenda-s86-rural-growth-strategy-committee-220318.pdf, pp.132-137). These should be recorded as corpus gaps in _gaps before any more definitive implementation-status page is prepared.