Parks Victoria is asking people to avoid direct contact with the water at Lake Bolac after high levels of blue-green algae were detected in the water body.
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People are advised not to swim in the lake as water affected by blue-green algae can cause skin irritation.
Fishers are also being urged to discard any mussels, yabbies and crabs that they catch in the water, and to ensure any fish they catch are thoroughly cleaned in freshwater and have their internal organs removed before consumption.
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If ingested, water affected by blue green-algae can cause cramps, nausea and vomiting.
Boiling the water does not make it safe to drink, as it instead releases the algae's toxins, increasing the chance of sickness.
Warning signs have been placed around the lake to make people aware of the potential hazards the algae poses.
The algae bloom will likely remain until substantial rainfall washes it from the lake, or cooler weather slows the algae.
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