The lack of a suitable site has stalled a priority project in the Mount Alexander Shire.
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Council had planned to construct an off-lead dog park in the shire in 2018 and labelled it a priority project in July last year as part of its annual plan for 2018/19.
But restrictions on land have forced council staff to broaden their search for a site for the dog park.
Council had been looking at a site in Campbells Creek but it was found to be environmentally sensitive following further investigation and discussion with stakeholders.
"There are restrictions around the use of land that we previously identified as an option for an off-lead dog park," director of infrastructure and development Phil Josipovic said.
"Council recognises this is a priority for the community and is eager to find a solution.
"We are still investigating possible sites to deliver on this commitment."
"We have funds in our budget to allocate to the dog park once a suitable site is identified."
Mount Alexander Animal Welfare group treasurer Stephanie Miller said people in the area would certainly use an off-lead dog park.
"When we first started in 2017, we seriously considered putting one in at the shelter," she said ."We have the space but we decided against it because it was on a slope with a lot of trees and had other (projects) to do.
"There are people in the town who are really keen on it but it is not something that is the top of (anyone's list). I know council are keen to establish one.
"I have every confidence they will do it and (in the meantime) there are other places to walk dogs off leash."
A lack of off-lead dog sites in the area led Hilltop Kennels and Cattery owners Mick Williams and Lisa Huxley to develop their own, privately-run dog park in Guildford.
The couple opened the Hilltop Dog Park in January and has seen it well-supported by dog owners in region.
In 2016, council hoped to place the off-lead dog park at the Castlemaine Botanical Gardens but plans could not go ahead due to a rare population of Eltham Copper Butterfly.
Recreation reserves in Castlemaine were also made dog-free zones following a Castlemaine resident being injured after an off-lead dog ran in front of his bike in 2017.
The man suffered multiple fractures and had shoulder surgery while Wesley Hill Recreation Reserve and Doug Powell Oval became dog-free zones.
According to the Mount Alexander Shire website dogs are also prohibited at Castlemaine's Botanical Garden playground and Victory Park.
Dogs must be on-lead at Campbells Creek Community Park, the botanical gardens, Castlemaine and Maldon CBDs and the netball courts at Wesley Hill Recreation Reserve.
For more information on dog walking in the Mount Alexander Shire area visit www.mountalexander.vic.gov.au/Dogs_in_parks
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