HOBLERS Bridge wastewater treatment plant has had its second sewage spill this financial year.
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Heavy rain last month saw sludge spill over from a tank and into the adjoining park.
Ben Lomond Water brought in a pump truck to remove the contaminated water and sludge.
The stench is still present in the park and lime has been laid over the area.
Fencing and signage notifying pedestrians of the incident was put up shortly after and remains in place. It will be removed after consultation with the Launceston City Council, which manages the park.
The Environmental Protection Agency was also told of the spill.
In the 2010-11 State of Industry Report, the plant scored 97 per cent compliance with the discharge standards applied to it.
But, it achieved 69 per cent compliance with achievable performance standards according to the report.
Ben Lomond Water is reviewing Hoblers Bridge, along with the six other biggest treatment plants in the North - at Ti-Tree Bend, Newnham Drive, Norwood, Riverside, Prospect Vale and Legana.
The review is investigating the feasibility of effluent reuse and reducing the number of plants.
Total project budget is estimated to be between $160 million and $250 million.