Colac Otway Shire Council has issued a Notice of Decision to Grant a Permit for the Falls Festival to take place at a property in Murroon in December this year.
Council's decision supports the music festival to take place in 2022-23 and 2023-24 through the temporary use and development of the site, which is within the Farming Zone.
Council's Notice of Decision to Grant a Permit for the music festival provides objectors with 28-days to apply to VCAT for a review of Council's decision.
The festival, to be known as 'Pennyroyal Plains', is to be held at 185 and 265 Telegraph Road, Murroon and the festival will replace the annual Falls Festival previously held in Lorne.
Colac Otway Shire Council Mayor Kate Hanson said local support for staging of the event referred to economic benefit to the community and business owners, such as businesses and contracts engaged for the event and visitor spend in the region.
24 objections were received for the application, along with 14 submissions in support of the proposal.
"Letters of support, and community members who spoke to their submissions, recognised the event would also open up fundraising opportunities for local groups and organisations.
"Hosting the event, with a well-known and established Australian music festival that showcase world class international and local performers to thousands of music fans, will have a significant effect on raising the profile of the area, for the summer period and also year-round tourism," Cr Hanson said.