Chiltern is facing reports of ground movement and wall erosion from groundwater, which is believed to be from an underground spring.

Indigo Shire Mayor Bernard Gaffney said underground water has been a long standing issue in Chiltern.

“It has been like that for years, water just comes up from the bitumen and now it just comes out from the footpath,” he said.

The reason behind the water issue is being debated through the region, with council allegedly saying a newly installed sign is the problem.

“Council has done some footpath work but now they’re pointing the finger at us.. but to put the sign in it would be lucky to go down 10 centimeters and they’re saying that is what has caused it - i doubt it,” said Mr Gaffney.

To resolve the issue a consultant has been appointed to try to find a solution.

“I am meeting with the Chairman and CEO of North East Water next week and council has engaged a water consultant to look into the problem and we’re waiting on a report from him,” said the Mayor.