Hepburn Springs resident David Church said he had cycled around the fence, which was installed last month, many times but was confused because wire had been ripped away.

"I looked at the vacant gap and thought it was a clear way," he said.

"I didn't see the bar which was about two inches thick at head level.

"I was knocked backwards onto the pavement, flat on my back. There was blood pouring out of my nose and mouth."

Mr Church said a doctor at Springs Medical Centre in Daylesford told him he had damaged cartilage and possibly broken his nose.

"It was an incredible shock," Mr Church said.

"Something should be done about the fence."

Neighbouring business Electric Sitar owner Shayne Anscombe, who has opposed the fence since its erection, said he had seen people driving their cars through the gap in the fence and "kids swinging on the bar which is also dangerous".

Meanwhile, IGA owner Jenny Ganim said a fencer would be repairing the fence which had been damaged a number of times through vandalism.

"We're blocking off the fence so that people can't hurt themselves by walking around or through it," she said.

The fence was erected by Ms Ganim more than one month ago to stop customers driving too fast through the car park and endangering lives.

It has been a source of contention with surrounding businesses.

Hepburn Shire communications officer Sue Moses said Ms Ganim had now applied for a planning permit with the council.