The dirt road is a through road to Koroit and could improve access to the town for the wider district.

A developer paid a $70,000 bond in 2009 as part of a subdivision in the expectation that it would be used to eventually upgrade Winslow's O'Keefes Road.

But the bond will now only cover 30 per cent of the cost of sealing the $280,000 road with a council policy normally requiring a 50 per cent contribution from adjoining landholders for a road to be sealed.

Officers at the June council meeting said a contribution from landholders was now unlikely and councillors narrowly voted 4-2 to break the policy and fund the road upgrade using additional federal government money received this year.

But councillor Mick Wolfe, involved in a 2014 council decision requiring landowners to fund the cost of the road, voted "on principal" against sealing it.

Cr Wolfe, supported by Cr Colin Ryan, said he had resolved not to break council policy.

"I know for a fact the residents have been approached, I helped conduct that a number of years ago to see if they had an interest to contribute towards the project," Cr Wolfe said.

"They want a road, but they don't want to pay a cent for it.

"Let's get the policy back up then, because that isn't working if we say 'yeah alright, you can have a $200,000 road and you don't have to throw in a dollar.' Tell me that is good governance."

But Cr Jim Doukas said the road was heavily used in summer and by residents of nearby districts.

"I think it's really an insult to the rural community, it's not just the people who live on that road, it's a through road to Koroit," Cr Doukas said.

"I think the community would appreciate us doing it, to say no I think is a blight on our ability to look after the whole shire."

Councillors Jill Parker, Jordan Lockett and Daniel Meade also supported sealing the road.

"This developer put up that bond in good faith that Moyne would fund the remainder to provide a sealed road for the residents," Cr Meade said.

Councillors also voted unanimously for the council to fund about 50 per cent of the cost of sealing Mortlake's Waters Lane after local business Earth and Water Technologies offered to pay the remainder.

Cr Ian Smith was absent from parts of the meeting.

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