EPA testing Vic lagoon chemical spill

A smelly chemical spill in a lagoon may be seeping into a Victorian river.

An unknown smelly substance has been found in a Shepparton lagoon that's close to the Goulburn River, with tests underway to determine what the substance is and if it has seeped into the river system.

The Environment Protection Authority is advising bushwalkers to avoid the area until test results are known.