Gippsland Water will decommission the Sunny Creek road water main, affecting 11 local landholders who will need to find an alternative water supply.
Gippsland Water released a statement regarding the decommissioning which said they have provided landholders with nine months notice and are now consulting with them to find the best outcomes.
The 1.92km water main was installed in 1956 and since 2007, there have been eight major failures along the main and 20 water quality complaints regarding low pressure or no water at all.
The most recent failure In November 2015 resulted in landowners being without mains water for two and a half days and Gippsland Water needing to supply them with bottled water. Water supply following this incident has only been able to be restored via a temporary connection.
Gippsland Water said that despite continued and extensive maintenance, the main has now reached a point where it can no longer be satisfactorily repaired or maintained. They said the replacement costs of around $1million, which would have to be funded by customers through tariffs, cannot be justified.
In a statement, Gippsland Water say the decision to decommission the Sunny Creek main is not a decision that has been taken lightly.
The landholders were under a Water by Agreement with Gippsland Water which allowed water to be provided outside of a declared serviced district.
Gippsland Water decided to cease billing the affected landowners from December 2015 and is currently undergoing consultation with affected landholders in order to find solutions that serve all parties.
The estimated cost of replacing the main is based on similar Gippsland Water projects in the region that have occurred over the past few years.