Kilmore Creek, in Victoria’s foothills, originates near the township of Kilmore which discharges stormwater to the creek. Much of the catchment is substantially cleared for agriculture. Some farms drain dairy waste to the creek and for much of its course there is direct stock access. Farms will often include farm dams and septic tanks. These impacts, combined with an altered flow regime from water extraction, groundwater pumping and urban growth, result in very poor creek condition. Wastewater from the Kilmore Wastewater Management Facility (WMF) is currently managed using winter storage and summer irrigation, although this approach is becoming untenable due to rapid population growth and limited irrigation opportunities. The WMF manager (Goulburn Valley Water) is exploring the potential for discharging to Kilmore creek following upgraded nutrient removal. Although the nutrient concentrations of the proposed discharge would be higher than background, modelling has suggested that with the upgraded treatment, these inputs can be offset by catchment and riparian zone improvements, including removing stock access to waterways, rehabilitating severe gully erosion sites, dairy effluent management and riparian zone rehabilitation. Beyond nutrient reduction, benefits of the proposed discharge and offsetting include reduced sediment inputs to the creek and managed flow discharges, mimicking and supplementing natural flows in an increasingly drying climate.