Controversial statues will be installed "as soon as possible" after the Central Goldfields Shire made a decision about Dunolly's streetscape.
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The sculptures by internationally-renowned artist Deborah Halpern have been at the centre of a debate about contemporary art in historic streets for months.
The council has scrapped plans to install one sculpture outside a historic hotel linked to 19th century company Cobb & Co.
The "Kangaroo" sculpture will now be erected in the town's Rene Fox Gardens.
The "Dingo" sculpture will go up at 118 Broadway, shire chief administrator Noel Harvey said.
"Obviously, there were a wide range of views that were heard and we believe this decision offers a compromise for the entire Dunolly community," he said.
The sculptures were selected from drawings by local school children during a community-led project to create public artwork.
Two of the sculptures were erected in Gordon Gardens without controversy.
The debate around the final two did not centre on whether the artworks belonged in Dunolly, according to Central Goldfields Shire officers ahead of the council's vote on Tuesday night.
"The concern is perhaps the modern colour and style and specific location of the sculptures that have resulted in the community debate," they said.
The council received 75 "varied" submissions, some of which objected to the sculptures being placed on Broadway, others arguing for different parts of the street and town, and more arguing for them to remain.