Hindmarsh Shire Council has granted a planning permit for a brewery business in Rainbow.

Councillors voted at a meeting on Wednesday to allow land in Federal Street – at the rear warehouse of the town’s Eureka Hotel – to be used for the Rainbow Brewery.

Applicant Shane Brown submitted the permit in October to build a 24-metre by 15-metre warehouse to the south of the hotel.

Hindmarsh shire mayor Ron Ismay said the brewery would provide a tourist boon for the small town.

“The discussion at the council meeting was all very positive, and everyone in town is quite excited about it,” he said.

“I understand the applicant has breweries elsewhere, but he likes Rainbow and decided to establish a business here.

“I think it's great. Microbreweries are big business these days – they've exploded and are quite popular.

“I think there's tourism opportunities because I hear people are travelling and sampling beer as they do with wine.

“I see huge potential for this to bring many tourists to the town.”

Mr Brown applied to trademark the name Rainbow Brewery earlier this year, and is working on designs for the Rainbow Beer bottles and bottle caps.

Fermentation tanks and a brewhouse are being built in China.

“He has taken out licences on the name ‘Rainbow’, and is keeping people up to date on his Facebook page,” Cr Ismay said.

“I've seen the bottle cap design, which has a rainbow on the top of it.”

Council notified adjoining landowners about the proposal, and notification was also given to Victoria Police and the Victorian Commission for Gambling and Liquor Regulation. No objections were received.

Council approved the planning permit with a range of conditions covering landscaping, amenity, heritage, car parking, licensing, and environmental health.

Mr Brown intends to start brewing early next year.

The Wimmera’s only brewery – Farmgate Brewery and Distillery – runs in St Arnaud.