An innovative trial at Neerim South aims to cut the costs of treating wastewater.
Gippsland Water managing director Sarah Cumming said the innovative trial, due to wrap up in October, aimed to reduce the amount of electricity used during wastewater treatment.
The trial using nanobubble oxygenation technology works by creating smaller bubbles that reduce the operational time of energy intensive equipment such as pumps and motors.
"Every dollar we can save by making treatment processes more efficient helps to put downward pressure on customer bills," Ms Cumming said.
The trial funded by $50,000 awarded through the Victorian water minister's climate innovation challenge is being conducted in partnership with the technology's supplier Custom Fluids.
Ms Cumming said if the trial results were positive Gippsland Water planned to install the technology permanently at Neerim South and explore opportunities for other sites.
The results will be shared with the wider Victorian water industry with the potential for it to be used more broadly across the state.
Ms Cumming said as well as the potential to reduce energy consumption it could improve environmental water quality.