The troop is being forced to sell its 40-seat bus used to transport members across Victoria.

Creswick Light Horse president Gary Chandler said their 20 horses, which were donated, were normally grazing in pasture but were now being hand-fed due to the drought.

He said the troop had spent about $5000 on hard feed (horse pellets) in the last month.

"It's a long term situation," Mr Chandler said.

"We won't be back to normal until this time next year, if we get rain."

The troop has had to look further afield for hay including Warrnambool.

Mr Chandler said the bus had to be sold to raise enough funds for the hay.

He said the decision to sell the bus was based on the changing dynamics of the brigade.

"We don't use it as much in recent years," he said.

The bus can be converted to a campervan, is registered commercially and is powered by a Holden V8 engine.

Hepburn Shire Council has already given the troop $1000 under its 2006/07 Community and Events Grants Scheme.

The money will be used for horse maintenance, and hay and equipment purchase.

"We are very grateful for the council. It keeps the group going," Mr Chandler said.

Mr Chandler started the Creswick Light Horse Troop as an addition to the Creswick Youth Alliance Branch Blue Light Disco 11 years ago.