Goulburn Murray Water has approached developers to upgrade the park.

The council is considering the application following a public consultation process.

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The park is now about 50 years old and was built with the State Rivers and Water Supply Commission of Victoria after the creation of Lake Eppalock on what was previously farm land.

"Goulburn Murray Water have offered their full support for this project and are hoping that the lessons learned from this process will assist with providing a framework for the upgrade and redevelopment of other caravan and camping parks operating on [their] land," developers said.

"Considerable" investment is needed to bring the facility up to scratch, including infrastructure and amenities, developers told the City of Greater Bendigo.

"Although caravaning and camping are still popular, caravan parks have seen in recent years a change in the needs and aspirations of guests, with cabins becoming the favoured option for many people rather than the traditional powered caravan and camping sites," they said.

"As such the proposed redevelopment will see an increase in the number of cabins to meet this demand and to ensure the parks viability into the future."

Developers would also replace all cabins already on site.

"It should be noted the cabins are exclusively for short term holiday accommodation only and permanent occupation of the cabins will not be permitted," they said.

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Developers want to keep as many mature and semi-mature trees within the park grounds as possible but say a number of those scattered through the park are in poor health and would need to be removed.

Others would need to go to make way for the redevelopment and to help deal with the threat of bushfires in the area.

Developers plans for the site include 185 cabins, 144 caravan and camping sites as well as a cafe and restaurant, playground and swimming pool.

They also want a reticulation system for drinking water sourced from Lake Eppalock.

This story was updated on August 3, at 1.35 pm. GMW is not planning to sell the land, as incorrectly stated in the original version of this story. The Advertiser apologises for the misunderstanding.

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