Redevelopment at the Hepburn Springs business will include 27 new hotel suites comprising four two-storey buildings, five two-storey villas, a split-level lodge with communal relaxation areas and spaces for food and beverage

service, an outdoor heated pool, a new single-storey office and extensive landscaping.

There was one objector to the planning application whose main concern was noise.

"We will be taking it to VCAT on the grounds that it will be intruding on residential grounds," she said.

Coliban Ward councillor Heather Mutimer also opposed the development, stating she needed more time to think about the application.

"This is a significant site," she said.

Councillors also approved the use of Villa Parma which will be temporarily used for therapeutic rooms for a period of two years after which it will revert to accommodation.

Managed by Malcross Investments, Peppers Springs Retreat owners Chris Malden and Brian, Heather and Wayne Cross hope to start redeveloping in six months if it doesn't go to VCAT.

"We believe we have addressed previous concerns and spread the development out in a bigger area," Wayne said.

He said the redevelopment would help meet clients' needs.

"Clientele is looking for more. The gardens and rooms are 15 years old," he said.

The redevelopment would also create local employment by employing local contractors, according to Malcross Investments. About 10 to 15 jobs would be created at Peppers Springs Retreat.

Mr Malden said the redevelopment would help regenerate life in Hepburn Springs and complement places including The Palais and the Hepburn Mineral Springs Bathhouse.