The Winchelsea Men's Shed is doing its bit for the environment with the installation of a 13,600-litre rainwater tank.
The tank will be plumbed to the shed's toilets and wash trough saving about 40,000 litres of water a year. It will also be used to water the Winchelsea community garden.
Barwon Water provided $4,400 through round two of its major grants program towards the tank.
Barwon Water Chairman Roger Lowrey said the corporation was pleased to support community organisations in becoming more sustainable.
"You often hear about big companies making water savings through large-scale conservation projects," Mr Lowrey said.
"While Barwon Water certainly supports such initiatives, we are also conscious that community-based groups are keen to do their bit, albeit on a smaller scale.
"Options such as rainwater tanks and replacement of inefficient fixtures and appliances are achievable measures for many organisations and can result in significant savings over the long term.
"We commend the Winchelsea Men's Shed for its commitment towards water conservation."
The grants program was launched in 2009 and initially targeted customers using more than 10 million litres of water a year. Eight business and industrial customers were successful in securing funding for projects that will save almost 300 million litres a year.
In late 2010, the program was expanded to include small businesses, schools and community groups.
Ten organisations, including the Men's Shed, received funding worth a total of $109,000 in round two of the program.