The Victoria Environmental Protection Authority has identified a rural property in Kaniva as a possible site of illegal dumping.
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An EPA spokesman confirmed the organisation was looking into the matter.
"Initial observations suggest the possible illegal dumping of industrial waste," he said.
"A second inspection will occur and, if required, EPA expects it will use its powers under the Environment Protection Act 1970 to require the property owner to assess the level and extent of waste dumped at the property and to clean it up.
"EPA places the highest priority on the community’s safety and well-being, and is acting to ensure any risk is minimised."
The spokesman declined to answer further inquiries from the Mail-Times regarding the location of the incident, when initial inspections took place and what the prescribed industrial waste was.
The Mail-Times has also contacted Kaniva police for comment.