Swan Hill is Victoria's largest town without natural gas, and Mr Hovenden believes a gas pipeline would provide a major boost to the region's business and farming community.

A $1 million feasibility study, funded by the State Government, is currently looking at how a natural gas connection to the Swan Hill and southern Riverina will benefit businesses.

A draft report will be completed by April and if it deems that the region would benefit, the group of councils will be in a better position to lobby the State Government.

"Businesses that are here have to look for alternate sources of energy which is quite expensive," Mr Hovenden said.

"It's an expensive business to provide the gas pipe in the ground, but the group of councils in the region and in New South Wales can see the economic opportunities provided by natural gas.

"One of the key components of both those areas is food production, and the opportunity to value-add by having a more affordable source of energy."

The north-west of Victoria and the southern Riverina is somewhat of a black hole for natural gas connections. Mildura sources its gas from South Australia, while connections from Melbourne stop in Bendigo and Echuca.

Deniliquin is the last NSW town along their line to receive gas.

Mr Hovenden said development in Mildura during the past 12 years was an example Swan Hill could learn from.

"Mildura were connected up to natural gas about 12 years ago and the gas pipeline that was put in was supposed to last 30 years before it reached capacity. It reached capacity in about 10 years," he said.

Despite previous failures to bring natural gas to Swan Hill, Mr Hovenden is more confident this time round because of the regional approach of the bid.

"We're coming together with a more broader scale and I think that makes it a lot more attractive for the State Government to have a look at the bigger issue," he said.

"It's a critical issue and we'll keep fighting the fight. We as a council believe it's too important to let go."