However the council is awaiting $10 million from both the state and federal governments before the $30-million project, to be built at Kangaroo Flat, can go ahead.

City of Greater Bendigo mayor Barry Lyons says despite the lack of funding, the planning permit application was a significant milestone for the priority project. 

He said it was an exciting step towards the project becoming 'shovel ready'. 

“This enhances our case for funding from the state and federal governments,” Cr Lyons said.

The plans for the proposed new two-level complex include an eight-lane 50m swimming pool, a hydrotherapy warm water pool and spa, a splash pool, a gymnasium, wellness centre, change rooms and short-stay childcare facilities.

Infrastructure and Regional Development Minister Warren Truss has not formally committed his support for the project, with a spokesperson saying his office was not aware of any formal application related to the project.