The project is designed to supply non-potable water across a 354,000 hectare area covering the northern part of the Pyrenees and parts of the Northern Grampians and Central Goldfields Shires.

Rathscar farmer and Natte Yallock Landcare group president John Hanley said since 2000, the area had four or five really bad years, where people were carting water.

"There are some areas in our Landcare group that don't have underground water, so windmills or bores are no good," he said.

"For those people, it just gives them a sense of security of stock water and for putting in boom sprays - a lot of people are cropping and are doing that."

He produces canola, barley, wheat, oats, hay and wool.

He also said there were a few landholders involved in intensive farming, such as feedlots.

"You need to have a guaranteed water supply, and I know of a few farmers who would be doing a lot more intensives, finishing lambs and that type of thing, if they had a guaranteed water supply."

He said the process started in 2018.

"I am a realist, if it was by five years, I'd be very happy, if it was in by three, it would be great," he said.

"Our Landcare group made it a high priority to try and get water to our area, so we instigated a meeting with the three shires and some politicians," he said.

COVID-19 delayed the process - "it's been a long run, but finally we are starting to see things happening, so that's good."

A reliable water supply would also help with stock containment areas.

"Traditionally, they have carted water from out of a bore, on my property, and it is salty water - it keeps them alive, but it's not good for young sheep.

"They won't die, but they don't really go ahead, either."

He said hobby farmers and those who wanted to grow a garden would also benefit from a reliable supply.

"It's pretty depressing to lost your garden, because you run out of water, in a dry time - so for people's mental health, it is a very positive thing," he said.

He said while some farmers were reluctant to spend upgrading their water supply, they were happy to buy new machinery.

"Water is the most important thing," he said.

During recent droughts, a reliable water supply would have saved carting water, at a cost of time and money, he said.

Victorian Farmers Federation Water Council member Graham Nesbit said reliable water gave landholders options to diversify.

"Heading into this current El Nino event, I know personally how reassuring it is to have a clean reliable water supply for our stock, via the South West Loddon Pipeline Project," Mr Nesbit said.

Pyrenees mayor Ron Eason said the project had been found to be technically feasible and a business case was now being developed to enable proponents to present a funding submission to higher levels of government.

"It is important we hear from landholders interested in water security who want their area to be included in the scheme," Cr Eason said.

"Lodging a non-binding expression of interest will help Grampians Wimmera Mallee Water refine the design of the proposed water network, as well as illustrate the level of interest to higher levels of government."

The boundary for the 354,000 hectare area of interest extends from Elmhurst to Joel South, Deep Lead, Glenorchy, Bolangum, Carapooee, Goldsborough, Bung Bong and Amphitheatre.

Details about the project and how to lodge an expression of interest can be found at https://gwmwater.org.au/swnep-study or by calling 1300 659 961.