THEY'RE a happy mob in Bridgewater - just ask any one of the touch over 360 people who call the north-central Victorian town home.
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That might be a surprise to some, but certainly not the authors of the latest Household Income and Labour Dynamics Survey.
The report, released this week, provides a snapshot of nearly 20,000 Australian lives.
Chief among its findings was that Australians who live in towns with a population less than 1000 are the happiest in the nation.
Bridgewater locals say they are not surprised by the survey finding.
Jessie Palfreyman was born and bred in Bridgewater and returned to the town in January this year with her partner Ben after five years’ away.
The Bridgewater Bakehouse employee said she was glad to be back home.
"It's a beautiful town - I really missed it," she said.
"Everyone here works together and knows everyone by their first name.
"If a farmer needs a hand with something, people come from everywhere to help out."
Ms Palfreyman has fond memories of helping build a waterhole on the Loddon River where locals would congregate during the year.
"Not every town is as lucky as us," she said.
"We have the river - a lovely river - and also the caravan park. And we have sky diving now as well.
"We've got everything we need - a pub, a butcher and bakery.”
The tag of Australia’s happiest residents sat well with children at Bridgewater-on-Loddon Primary School, who on Friday celebrated with a song and dance to Pharrell Williams’ international hit ‘Happy’.
Principal Gordon Tonkin, who is in his 10th year at the school but travels each day from Bendigo, said there was a real sense of community at the school.
“I describe our school as a big family,” he said.
“At our school we only have about 30 students so it’s more intimate than other schools.
“There is a sense that everyone at the school is a significant individual.”
Long-time resident Kristie Cullinan said she had lived in Bridgewater for all but two of her 38 years and believed the town had plenty to offer everyone, including potential newcomers.
"There's lot of different community organisations. There's ones that run festivals, there's always the sporting committees and the Lions club, she said.
"There's never any trouble that I am aware of, our local policeman is pretty spot on."