height covered nearly . As a present to the township in 1988 (Australia's Bicentennial) a new lake was constructed by the State Government. This lake is now known as Tea Tree Lake. Soldiers returning from The Great War were also offered the chance to become farmers. Under the Discharged Soldiers' Settlement Act 1917 they were offered land selections on reasonable terms. The War Service Homes Commission was established in 1919 to provide houses for successful "soldier settler" applicants and their dependants. The simple weatherboard cottages they erected, however, proved far from adequate. At Mortlake the Government’s Board purchased large areas of the Lionel Weatherly’s Woolongoon estate. 39 farms were laid out at Woolongoon. Dairy farming would provide a successful livelihood for soldier settlers. In 1918 the area was regarded in popular opinion as "an agricultural Utopia". Given the high rainfall and good soil in many parts, and the ability of local farmers to make a livelihood on a small acreage. The Woolongoon estate at Mortlake proved to be highly successful. After WWII another soldier settlement scheme was established in Mortlake. The former Mortlake Shire had the highest number of soldier settlers in Australia. There were 248 holdings from nearly on 29 estates, but there were more soldier settlers around Caramut, Hexham and Darlington. Population in Mortlake peaked with the end of the baby boomers and the start of the Generation X. A series of droughts and the inevitable process of the young moving to more urban areas for education and work, lend to a change in demographics. Deregulation of state government laws put more pressure on small businesses from competition from larger firms in the city. Farm labour became more mechanised. Eventually the population began to shrink. Smaller population meant less demand for services, which reduced the need for employment. A Mortlake railway line connected Mortlake with Terang from 1890 until 1977. Mortlake Magistrates' Court closed on 1 January 1983. Real estate prices collapsed when the Kennett government decreed that all towns over 500 people needed to be connected to the town sewage supply. The cost of connecting to the sewage was more that what the house was worth. The Avenue of Honour situated on the eastern approach to Mortlake along the Hamilton Highway is a 2.2 km long avenue featuring 192 Monterey Cypress Trees. Originally planted of Arbor Day 1920 the Avenue of Honour was extended after the Second