Two-and-a-half kilometres of the pipeline — which transfers drinking water from the Port Campbell water treatment plant to customers in Peterborough and Timboon — will be replaced by June.

Stage one of the project, which replaced the first one-and-a-half kilometres of the pipeline, was completed in September 2013.

Wannon Water managing director Grant Green said the $543,000 stage-two works will complete the pipeline replacement, ensuring the ongoing security of supply for the towns and catering for future growth.

“Replacing this important water pipeline will reduce the risk of future bursts and major interruptions to the supply of water to our customers,” Mr Green said.

“This critical water supply line has served Peterborough and Timboon well but it is now reaching the end of its serviceable life.”

He said the works will ensure that the supply of water to Peterborough and Timboon remains reliable for the next 80 years.

“The new pipeline is being constructed using a more robust cement-lined ductile iron pipe better suited to the ground conditions, which will reduce the need for costly and disruptive repair works in the area in future years,” he said.

Wannon Water says only minor water supply interruptions will be required for a small number of customers.