Moyne Shire Council officers will work with the Department of Sustainability and Environment to look at risks and how to respond to them.

The initiative was confirmed by Planning Minister Justin Madden last week as he announced a 22-lot subdivision proposal for Port Fairy's East Beach had been refused.

He said the site was vulnerable to erosion and flooding.

Mr Madden also announced a $1 million fund to help coastal communities prepare for the risk of rising sea levels.

His refusal of the subdivision was welcomed by the Western Coastal Board and Victorian Coastal Council which opposed the proposal and lobbied for more attention to be given to the affects of climate change on coastal planning.

Coastal council chair Libby Mears said local government needed certainty and needed proper information to talk to their communities about what was happening.

"The decision signifies that all levels of government will need to work with communities to build understanding, respond appropriately to likely on-ground impacts and ensure proper planning to prepare us for challenges of the future," she said.

"Port Fairy is one of Australia's most vibrant coastal towns.

"We need to respond now to some existing problems of coastal erosion and plan for Port Fairy's future growth."

Coastal board deputy chair Sue Mudford said her group first objected to the East Beach plans in 2005 when it was lodged as a 35-lot subdivision.

She said the board was also concerned with the rezoning of the land from rural to residential in the late 1990s.

''Given the unsuitability of the site for development due to climate-induced risks, the finding that the land is inappropriately zoned is to be commended," she said.

look

overlooking Port Fairy Bay

"Continual evolution of development pressures on coastal communities and understanding of climate impacts is increasing the complexities of planning decisions."

The State Government has released an options paper for a blueprint on managing the coastline and infrastructure in the face of climate change. Submissions close on April 26.