Property developers Simonds Developments said extensive salinity and groundwater testing from August last year to April had demonstrated the site was fit for development.

Earlier this year the groundwater level was measured at less than half a metre below the surface.

Site development manager Matthew Dean said the company was confident that groundwater was not a problem at the site.

He said that according to the report, the recent weather events created an ideal situation to test the groundwater levels on site, mainly due to heavy rainfall in the Bendigo region.

“We’ve experienced some of the most extreme weather events and the site has held up superbly,” he said.

The report stated that rainfall over the site from August 2010 to March 2011 was the highest recorded in the Bendigo area for that time period in the past 150 years.

It was 2.9 times the long-term average and 3.6 times the long-term median rainfall for those months.

Mr Dean said having the study carried out during such a dramatic series of high rainfall events was very reassuring for potential buyers.

“We know the ground will hold up strong and firm even during the wettest parts of a Bendigo winter, and we’re making sure the site is solid for future generations,” he said.

Testing demonstrated the designed site levels would be able to achieve a minimum clearance of 1.5 metres to groundwater across the development, which is a key condition of the planning permit issued by the council last year.

Last year the council issued a permit for stage one of the Simonds Group project, involving 344 lots. The entire project is expected to create 700 lots and cost $210 million.