Lake Bolac sewerage scheme a 'first'

State Water Minister Peter Walsh says a new sewerage system at Lake Bolac is the first of its kind in Victoria.

Mr Walsh visited the town on Friday to open the $3.2 million facility.

He says it uses a natural filtration system to create a wetland habitat for native plants and animals.

Mr Walsh says he is working with local agencies to create more systems like it for small towns.

"It's the first in Victoria of this type, which is where the innovation is, which is why it was actually funded under the Country Towns Water Supply and Sewerage Program because we are trying to get more innovation in these types of projects in small towns to reduce the costs from the traditional way of treating sewage," he said.