The bathhouse was due to be finished in February, but the setback has pushed the opening date out to March.

A new lessee for the bathhouse is still to be selected.

That appointment was supposed to be finalised in July, but was delayed because of an administrative error.

A new deadline of November or December was set down, but even that has blown out and is not expected until February.

Three companies have been asked to submit detailed tenders.

The Department of Sustainability and Environment is overseeing the lessee process.

The bathhouse has been closed since October last year.

Bathhouse Business and Liaison Group member and Holcombe Ward Councillor Bill McClenaghan said Hepburn Springs businesses would be only slightly worse off because of the delay.

"The delay is very dissapointing," Cr McClenaghan said.

"Maybe it's not surprising given the complexity of the building," Cr McClenaghan said.

"It's just a pitty we have had to wait until the last minute to reveal there's been a delay," he said.

"However it doesn't put Hepburn Springs into lock down. All the things that have caused the area to boom in recent years are still there. They are all still operating and attracting people," Cr McClenaghan said.

In September Mr Theophanous said the project was on track to be finished on time during a visit to the site.

"Construction at the Bath House is on track and going well with the roof beams for the North wing currently being installed," Mr Theophanous said at the time.

The $10.7 million Hepburn Mineral Springs Bath House redevelopment will play a strong part in the continued growth of tourism in the Hepburn Shire.