The Victorian Government wants more details on a plan to turn the site of the old Hazelwood coal mine into a lake.

The Government has ordered an Environmental Effects Statement (EES) be produced for the rehabilitation of the Hazelwood coal mine. 

The mine’s owner, Engie, wants to turn it into a lake, but it would require more water than Sydney Harbour, prompting concerns about water availability. 

Victorian Planning Minister Richard Wynne says an EES is required because of the “potential significant environmental impact”.

Effects on local surface and groundwater, including water availability and its proximity to the Gippsland Lakes, should be covered by the review. 

"The EES process will allow all elements of the proposed works to be assessed and any issues, uncertainties, and risks to be identified and addressed," an Engie spokesperson said.

“It provides opportunities for community involvement and Engie Hazelwood looks forward to continuing to engage interested parties on this important phase of rehabilitation.”

The owners of the Yallourn and Loy Yang coal mines also want to fill them with water. This is likely to further increase demands on local water sources in the coming decades.