Bathhouse, according to councillor Bill McClenaghan.

The tender process officially began at a government launch last Wednesday.

Cr McClenaghan, speaking at the launch, said the process to date had been a great achievement and an example of collaboration between many varied organisations and the community's input through

the local liaison group, which includes 10 community and business representatives.

"The group has played a vital role in planning for the opening of the bathhouse including promoting the area while the building work has taken place," he said.

"This has proven to be successful with Hepburn Springs businesses having thrived despite concern there would be a downturn during the redevelopment process."

Hepburn Shire Council would be reappointed as committee of management after works were completed early next year.

The Department of Sustainability and Environment is responsible for appointing a lessee.

Planning Minister Justin Madden was at the site last week to announce the tender process and said the bathhouse was one of Victoria's most treasured tourism icons.

"Since the 1880s, Victorians have experienced the benefits of 'taking the waters' at Hepburn Springs for health and social reasons.

"We are now looking for a world class operator to run this world class facility," Mr Madden said.

The revitalised Hepburn Springs Bathhouse will provide additional employment and have significant economic flow-on benefits for other businesses in the Hepburn Shire, according to council chief

executive officer Victor Szwed.

"I look forward to the day early in 2008 when we gather here again to celebrate the opening of the bathhouse. What an occasion it will be," he said.

"A great many organisations and departments have worked together to enable this project to become a reality and indeed the bathhouse will be poised to accommodate the needs of both locals and visitors

for many years to come."

The relaxation, therapy and massage rooms in the existing heritage building are undergoing extensive refurbishment and a new building is being constructed to house a mineral water pool and spa facilities.

Member for Ballarat East Geoff Howard said the bathhouse was a significant link to the past and its restoration would help ensure the region's future as a tourist destination.