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Australia's smallest town, Licola, put up for sale sparking community outcry

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Entire Victorian town listed for sale amid financial strain

Licola, a remote village in Victoria's high country with just five permanent residents, has been put on the market for between A$6 million and A$10 million, drawing sharp criticism from locals and supporters.

Background: A community built on service

Nestled along the Macalister River, Licola began as a 1950s timber mill before its closure in 1968. The local Lions Club later acquired the site, transforming it into a hub for youth outreach programs and a vital stopover for travelers en route to the Alpine National Park. The town's general store, caravan park, and petrol station have served generations of campers, holidaymakers, and regional visitors.

Financial struggles force sale

The Lions Village Licola board, which manages the town on behalf of the charity, cited unsustainable operating costs as the reason for the sale. In a statement to the BBC, a spokesperson listed rising insurance premiums, aging infrastructure, and declining camp attendance as key factors. The board emphasized that the decision was not made lightly but was necessary to preserve the Lions Club's broader mission of supporting disadvantaged youth.

Proceeds from the sale will fund a new foundation to continue funding youth camps across Victoria, though it remains unclear whether future programs will remain in Licola. A planned January camp was canceled due to low enrollment.

Longtime resident faces eviction

Leanne O'Donnell, who runs Licola's general store and lives in the town with her family, learned of the sale in January 2025. Despite offering to organize fundraisers, she was told the board would terminate her lease, leaving her with no alternative location for her business. O'Donnell, who purchased the store in 2022 under the assumption her lease would be extended, has until January 31 to vacate the premises.

"I absolutely love this town... if it gets into the hands of a developer and turns into something that it's not, it [will] just break my heart."

Leanne O'Donnell, Licola General Store owner

O'Donnell described Licola as a tight-knit community where she serves as a lifeline for visitors, emergency services, and truck drivers, often fielding calls at all hours. Her eviction has fueled broader concerns about the town's future.

Community backlash and uncertainty

The sale has triggered widespread outrage, with locals and former visitors condemning the lack of consultation. An online petition demanding O'Donnell's lease be renewed has garnered over 8,000 signatures. Critics argue the town's closure mid-peak season will disrupt regional tourism and long-standing traditions.

"People rely on the store in town, and closing in the middle of peak season is stupidity at its best."

Comment on Licola Caravan Park & General Store Facebook page

Other Victorian Lions Club members accused the board of bypassing proper consultation, while some suggested the decision would tarnish the organization's legacy. The board reported receiving threats and considered withdrawing staff from the town.

What's next for Licola?

The board confirmed "considerable interest" in the property but did not disclose potential buyers or their plans. Denis Carruthers, the board's chairman, stated the priority was safeguarding the Lions' youth programs, not the physical site. The fate of Licola's iconic general store, caravan park, and community spirit now hangs in the balance.

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