HEPBURN Shire should consider an amalgamation in the face of its increasing financial burden, a Hepburn Shire councillor has said.

Cameron Ward councillor Tim Hayes has called on other councillors and the shire chief executive officer to consider the idea, in the wake of the Whelan report's warnings about the long-term financial sustainability of small rural shires.

Cr Hayes said it would be irresponsible to sit back and accept the report.

"What I'm attempting to initiate is a discussion amongst councillors in light of the Whelan report outcomes," Cr Hayes said.

"I think it's timely for the shire to look at its long term future.

"Everybody should be concerned at what was stated in the Whelan Report. That report indicated serious problems faced by the 18 small councils."

Cr Hayes said a variety of options could be explored, depending on the level of interest gauged by the idea.

"It could be said that Creswick's community is more directed towards Ballarat than it is towards Daylesford," Cr Hayes said.

"The same could be said of Clunes.

"The eastern part could be amalgamated with the Macedon Ranges.

"The western part could go to the City of Ballarat or Clunes could go to Central Goldfields."

Cr Hayes said an amalgamation would allow economies of scale to be achieved.

"We would be able to more effectively address our infrastructure gap," he said.

"Our roads, our bridges, our buildings really do need attention.

"As a small rural shire we just don't have the revenue base to address these problems."

Hepburn Shire was formed in 1995 from the merger of the Shire of Creswick, Shire of Daylesford and Glenlyon and parts of the Shire of Kyneton and Shire of Talbot and Clunes.