Dunstans Wangaratta have been contracted to undertake the work, and pipe delivery has commenced. Work sites on both sides of the river have been enlarged to accommodate the horizontal drilling machine, which will bore the 330 m, 3.15 mm outside diameter pipe under the river bed.

A second above-ground pipeline will also be installed alongside the existing temporary sewer bypass this week. It will be used during boring to remove spoil.

The second pipe will run alongside the temporary bypass, which is currently transferring recycled water from Aireys Inlet and sewage from west Anglesea to the Anglesea water reclamation plant. Both temporary pipelines will be removed once the new main is completed.

Barwon Water Managing Director Michael Malouf said work would be ramped up over the coming weeks.

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"We are aiming to complete this important project before Christmas to ensure the infrastructure is in place before the peak holiday period," Mr Malouf said.