Ms Hadden said the track had been fenced near Table Hill and that trees on Crown Land were being bulldozed.

Parks Victoria acting ranger in charge Karen Doyle said she had inspected the site and saw no fences or signs of illegal bulldozing.

A Victorian Civil and Administrative Tribunal hearing is yet to determine whether an eight-lot subdivision in Forestview Lane - on land through which a section of the track runs - will be allowed to proceed.

Hepburn Shire Council refused an application on behalf of J and M Bateup last October.

Residents are concerned that if VCAT overturns the council decision, public access to the track will be compromised.

Table Hill resident Lorraine Nicolls said the Forestview Lane proposal was one of three blocks of private land overlaying the track that she was concerned about.

The other two are at Shanahans Lane and Cockatoo Track.

"I want to know who is responsible for the future of the walking track," she said.

Ms Doyle said the land from Tipperary Springs to Muskvale, was administered by Parks Victoria but this did not include Shanahans Lane and Cockatoo Creek.

The council's planning and economic development manager, Judith Bedford, said Forestview Lane would remain a road reserve.

The Three Lost Children walk was established in 1988 to commemorate William Graham, seven, his brother Thomas, four, and Alfred Burman, five, who were last seen at their homes in Connell's Gully in 1867.

About 700 people turned up to search for the boys and after 25 days it appeared the mystery would never be solved. The bodies of the boys were eventually found in the hollow of a tree.