Lake Bolac continues to be impacted by high levels of blue-green algae.
Department of Environment, Land, Water and Planning announced algal bloom is expected to remain until there is significant rainfall to flush the lake or cooler conditions slow the algae on Friday.
Parks Victoria issued a blue-green algae warning at Lake Bolac in early January 2019 - with warning signs placed in the area for water uses to avoid direct contact with affected water.
The lake has been closed to recreational water users, and cautions apply to catch fish within the water.
Parks Victoria area chief ranger Siobhan Rogan said the blue-green algae was naturally-occurring and not uncommon at Lake Bolac.
"Although this year the blue-green algae has persisted, with the water level of the lake still quite low despite the recent rainfall," she said.
"Once we see some more meaningful flows through the Fiery Creek inlet and into the lake, we'd expect the algae will begin to disappear.
"In the meantime, we'll continue to monitor conditions and will remove signage once the lake is safe for use."
Lake Bolac Caravan Park owner Frank Deutsch said his business was impacted by the length of time the warnings had been in place.
"We've had quite a number of booking cancellations during the period," he said.
"Most of those cancellations have come from holidaymakers. People who wanted to go fishing or put their boat in the water.
"The water level was still OK for boats to enter the lake which can turn people away as well - this year it's only been the blue-green algae which is the problem.
"A few months ago there was a 40-degree day and the lake was empty - there was nobody around to be seen."
Mr Deutsch said it's a shame that all of the school holidays and long weekends have passed and access to the lake was limited.
"There was a significant number of cancellations - I'm not sure how many exactly but I know it was quite a few," he said.
"If there's nobody coming into town, there's no money getting spent here. Without the lake, Lake Bolac doesn't have much to offer - like many other small towns.
"Instead of the lake being an asset to the town, it's a liability right now."
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