Fencing and revegetation works are taking place along the Campaspe River and Post Office Creek, south of Kyneton.
Coliban Water managing director Damian Wells said the works were part of the company’s $2.1 million Kyneton Offsets Project.
Mr Wells said the project was developed to improve water quality along the Campaspe River.
“We are committed to long-term catchment health and we have an important role in protecting river health for future generations while meeting the needs of our communities,” he said.
Willow trees, blackberry, hawthorn and other weeds have been removed from about 13.5 kilometres of river frontage on 12 properties. About 20,000 native trees and shrubs will be planted in their place.
Earlier this month, Coliban Water announced plans to improve waste and domestic treatment processes at the Kyneton Water Reclamation Plant in a bid to protect the Campaspe River.
Additional aerators will be installed in lagoons to ensure the water release from the plant is within the Environment Protection Authority’s (EPA) licence conditions.
The installation of extra aerators forms part of a three phase project.
Phase one works are expected to be completed by March next year.
Mr Wells said Coliban Water had listened to the community and was committed to delivering the Kyneton Offsets Project and upgrading the Kyneton Water Reclamation Plant.