The plan is part of the Ballarat North Wastewater Reuse scheme, which will provide up to 800 megalitres of recycled water each year.

Works on a pipeline along Gillies Rd began last month, with Creswick's waste water set to begin flowing to the Ballarat North plant by the end of 2008.

Central Highlands Water said the water was being piped to Ballarat because there were limited opportunities for the water's reuse at Creswick.

Many Creswick residents were angry about the decision, saying nobody had been consulted.

Some residents also believed using the waste water on Creswick's sporting grounds should be a priority over piping it to Ballarat.

For others, it was "another blow", after the town's residents rallied unsuccessfully against a plan to pipe 420 megalitres of water from Cosgrave Reservoir to Ballarat's White Swan Reservoir.

Creswick Bowling Club president Harry Gibcus expressed his concern about the project.

He said the club was angry because it had spent lots of money on preserving its bowling greens in the drought, when it should have been using waste water if it was available.

He said the club had spent $20,000 on four water tanks at its own expense, and had also received a $50,000 Federal Government grant to help pay for a second synthetic bowling green to be installed.

"The anger is very much alive," Mr Gibcus said.

But Central Highlands Water said the plan was the most cost-effective way to meet Environment Protection Authority obligations.

The EPA prefers treated waste water be reused on land instead of being discharged into waterways, where Creswick's waste water currently flows into Creswick Creek after treatment.

The authority said with limited opportunities to reuse the water in Creswick, there were greater opportunities for re-use at the Ballarat North Wastewater Treatment Plant.