The wool bales were termite riddled and beyond repair.

Southern Grampians Shire councillor Albert Calvano said it was disappointing but the owner of the site was left with no other choice.

"It's a pity to see them go but public safety comes first," Cr Calvano said.

"Termites got in the frame of the wool bales."

The wool bales were initially built in 1989 for disability group Yooralla but the site was later purchased by a private owner, who established a cafe and museum.

The business closed in 2013.

The wool bales were often mentioned on lists of Australian 'big things' to take a photo with.

Cr Calvano said he believed the town needed a new tourism attraction to put it on the map.

"Hamilton does need an icon to showcase our shire and pay tribute to our history as wool capital of the world," he said.

Cr Calvano said a large-scale merino sheep may be a good idea to pay homage to the town's reliance on agriculture and its popular annual event, Sheepvention.

"At the present time I feel like what have we got other than Wannon Falls and the art gallery," Cr Calvano said.

"We need something that stands out as you enter Hamilton."

Listen to the latest episode of our weekly episode The Booletin and Beyond:

Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.