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Drysdale has three waterholes, each connecting with the groundwater system that feeds into Port Phillip Bay via Griggs Creek.
Each waterhole was named after a local man prominent in Drysdale in the nineteenth century. Initially, the three lakes were known collectively as Sproat’s Waterholes, after a major local landowner. Subsequently, they were renamed McLeod’s Waterholes, probably after Dr. Angus McLeod, an early settler, Head Teacher at the Free Presbyterian church and school and an active participant in local affairs.
In 1872, the Bellarine Shire Council renamed the 30 acre lake to the south of the Geelong-Portarlington Road “Lake Lorne”; the remaining two lakes retained the name McLeod’s Waterholes*.
The three lakes are natural, fresh water lakes that are important habitats for a wide range of water birds. The largest - Lake Lorne is a natural shallow freshwater wetland of nearly 12 hectares; and of the two McLeod's Waterholes, the upper is much smaller and shallower and attracts various waterbirds.
The waterholes' visitors and residents include the rare Blue-billed Duck, the rare Freckled Duck, Black Swan, Australian Wood Duck, Pacific Black Duck, Grey and Chestnut Teal and Eurasian Coot. Large numbers of Cormorants, Shag and Egrets roost on the islands on Lake Lorne and at McLeod's waterholes; they fly in during the afternoon and evening.
The area around McLeod's Waterholes contains aboriginal oven mounds, middens and artifacts dating from between 3,000 and 5,0000 years ago, indicating that the waterholes were an important food and meeting site for the Wathaurong people.