The lake, between Marnoo and Donald, has seen little camping or recreation during recent droughts, but a top-up from the January floods has brought people back.

Northern Grampians chief executive Justine Linley said significant numbers of people had visited the lake during the past month.

"Recreation reserves such as Lake Batyo Catyo inject more than $1 million into the district's economy every year when they're in good order," she said.

"People buying things including food, bait and tackle for fishing boosts local businesses.

"Lakes are important to people over summer."

Northern Grampians Mayor Ray Hewitt said the lake needed more maintenance.

"It's looking 'daggy' and dilapidated," he said.

"With Christmas holidays coming people will want to camp, fish and water-ski at the lake.

"If its shore is clean and tidy people will enjoy summers there."

Northern Grampians community sustainability acting manager Tony Dark told the latest council meeting the money would be spent on cleaning, rubbish removal, consumables, gas, water, mowing and other maintenance.

"The lake is an important social, environmental and economic asset to the shire," he said.

"It is vital the lake can be used for tourism and recreational purposes over the summer period. "