HEPBURN Shire is still being kept in the dark over the State Government's handling of the $7.2 million Hepburn Springs Bathhouse redevelopment, chief executive officer, Victor Szwed, has said.

The multi-million dollar health and well-being resort is coming up to its lease expiry date in April 2006, and council has growing concerns about Regional Development Victoria's failure to make decisions.

Mr Szwed said relevant ministers and offices of the State Government had not yet responded to council since letters were sent over a month ago.

A media spokesperson for John Brumby Regional Development Victoria, said the government has kept Hepburn Shire Council informed about the issues around the bathhouse project.

"The government is currently in discussion with council regarding the redevelopment of the bathhouse and its issues."

Council, the official committee of management for the bathhouse, cannot make independent decisions regarding its redevelopment and lease.

Decisions are determined by the minister.

Council is worried time is running out as the processes required to advertise for a new lease, assess and gain minister approval to award and enter into a new lease will take several months.