A Victorian council will fight to stop ratepayers' money going down the drain and sending the council broke.
Latrobe City Council and Hazelwood mine operator, GDF Suez, are fighting over who has responsibility for the Morwell Main Drain after it was affected by a sinkhole in 2011 that cost $10 million to fix.
GDF Suez sought to have council declared responsible for the management and control of the drain, or alternatively that the council could no longer use the public drain for water flow from Morwell's south.
The Supreme Court of Victoria ruled in December 2015 the Morwell Main Drain is the responsibility of the Hazelwood Power Partnership, which is owned by mine operator GDF Suez.
GDF Suez has since sought leave to appeal that decision.
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Latrobe City Council chief executive Gary Van Driel says the council will fight the appeal and protect the future viability of the municipality.
It is estimated that future costs for the drain are in the order of $100 million - far beyond the council's resources.
"We don't accept cost shifting to a community who simply should not bear this burden," Mr Van Driel said in a statement on Monday.
He said the council would continue to liaise with the state government as it awaits the appeal outcome to be handed down.
GDF Suez confirmed in a statement on Monday that it was seeking leave to appeal the Supreme Court decision - and said it won't comment further while the matter was before the court.
