Construction of a $2.5 million boat ramp at Camperdown's Lake Bullen Merri's south beach will start next week with the project expected to be completed in four months.
The ramp will be closed from March 1 while upgrades - including a centrally-located pontoon, new concrete ramps and a retaining wall to minimise future impacts of sedimentation - are under way.
Options for temporary access to the lake are being discussed.
The works were prioritised because receding water levels had caused continual problems with the boat ramp which is popular with both boaters and anglers.
Corangamite Shire Council mayor Ruth Gstrein said the investment would have wide-ranging benefits for both residents and the region.
"A lot of people have put a great deal of work into this and it will be terrific to see work start," Cr Gstrein said.
"The South Beach committee of management, Better Boating Victoria, Fisheries Victoria, Parks Victoria, and council staff have collaborated to ensure lake users can continue to access this wonderful community asset.
"This investment will be of great lifestyle value to locals and will enhance the visitor economy through events, activities and regular visiting anglers."
The upgrade has been funded by the Victorian Government's Better Boating Fund.
In May last year, $2.5 million was set aside for the project in the state budget.
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Meanwhile, a warning has been issued to swimmers, boaters and anglers at the lake after a toxic blue-green algae bloom was detected.
The department of environment, land, water and planning said warning signs had been installed in the area and direct contact with the water should be avoided.
Those who do come into contact with water from the lake should immediately wash with fresh water.
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