MUSK residents are concerned bore water being carted out of Hepburn Shire for commercial bottling is having a detrimental impact on the environment.

Nearby residents, who have noticed tankers carting water from a privately owned bore, have questioned the ethics behind a law that allows the precious resource to be used without community consultation.

It is understood the property was sold, along with its existing groundwater license.

Goulburn-Murray Water's transfer application process does not require the transferee to notify the water authority of their intentions to transfer the license.

Coliban ward councillor Heather Mutimer said concerned residents had contacted her over the approval of the water rights transfer of 40 megalitres of water from farm use to a bottling company.

Bullarto's Frank Van der Hoeven's said he was mainly concerned because there was no monitor bore in the area to determine the depletion of ground water levels.

Mr Van der Hoeven said results from monitor bores in a Spring Hill water supply catchment area were a worry.

"The result for the year ending June 30, 2006 was quite astonishing as there was only 37 per cent of the total 4947 megalitre per year allocation used and the ground water table still dropped," he said.

He questioned the long-term sustainablity of the bore.

"Do we know the size of the aquifer? How and where it is recharged and do we know the geology of the land as to foresee the long-term impact?

"Rain and the running of springs can replenish dams and reservoirs but do we know how to recharge this aquifer?" Mr Van der Hoeven said.

Cr Mutimer was also concerned about the detrimental impact plastic water bottles had on the environment.

Consumption of bottled water more than doubled between 1997 and 2005.