The Natimuk Lake Foreshore Committee has been pushing for a spillway outlet for the lake and will meet with Parks Victoria next week to discuss the project.

The committee identified the project about three years ago as a way to secure and conserve water for the lake, which would help ensure residents and visitors could continue to enjoy boating and swimming.

Construction work then started on a spillway with approval from relevant groups except Parks Victoria.

The authority, which manages the land, stopped the work towards the end of 2016 because a required environmental impact assessment was not completed before the project started.

Parks Victoria then jointly funded a water management plan for the environmentally significant wetland system at the lake.

Natimuk Lake Caravan Park owner Lyndon Crozier said the committee was getting frustrating that nothing had been done since.

"We've been trying to get this finished for three years, but it just keeps getting hand-balled around," he said.

"We've been fighting for this for three years and we need some foreclosure on it.

"All the paperwork has been done and we've spent $30,000 on concrete already."

Mr Crozier said if the meeting with Parks Victoria was not successful in moving the project forward, the committee would take the issue to the water minister.

He said a spillway would benefit the town as more recreational water would bring people to the area.

"In 2014 we had 484 people stay at the caravan park at Easter," he said. "This year we had 200 people.

"Many people in Natimuk have speedboats, but they have to go to Edenhope or Apsley for water.

"These are activities that can be done in Natimuk."

Mr Crozier said Natimuk was home to one of the best recreational lakes in Victoria, when it was full.

Parks Victoria declined to comment on the issue.