The Leongatha Waterworks Trust was constituted by Order-in-Council on the 6th of March 1905 by the Governor-in-Council after receiving an application from the councillors representing the West Riding of the Shire of Woorayl (VA 2540). This was in accordance with the provisions of the Water Act 1890 (Act No. 1156). The order specified that the commissioners of the Waterworks Trust were to be the councillors of the West Riding of the Shire of Woorayl and up to three others for the interim period. It also specified that the amount of the loan granted for the Waterworks was seven thousand six hundred pounds. The principal works to be carried out by the Trust included the construction of a reservoir on Ruby Creek, construction and maintenance of a main pipeline from the reservoir to the Township of Leongatha, and reticulation of the Township of Leongatha.

Under the Water Acts, any municipality or group of municipal councils who desired to have waterworks contrasted, maintained or continued in or for their municipal districts were to send to the Minister an application for submission to the Governor-in-Council details including a general plan and description of the works for his sanction. Notification of the plan and suggested works were to be published in newspapers and the Government Gazette for at least a month, and proof of this notification was to be supplied to the Minister. If a petition against or for the construction of the works was also created, they were to also be forwarded to the Minister for submission to the Governor-in-Council.

Upon approval of the waterworks constructions, the Governor-in-Council caused a Waterworks Trust to be constituted in order to construct and maintain the works. The Waterworks Trust was a body corporate, had a common seal, was able to own property and land, was able to be sued and to sue, and take out loans &c. The State Rivers and Water Supply Commission (VA 723) were consulted regarding the constitution of each Waterworks Trust, the approval of loans awarded to Trusts and in other matters relating to Waterworks Trusts. The members of a Waterworks Trust could be the members of a Municipal Council if the Waterworks district concerned was wholly or primarily within one municipal district. Waterworks Trust were to consist of commissioners to be elected at regular periods by the council or councils specified by the Order-in-Council which constituted the Waterworks Trust. No more than three commissioners were to be elected by any one council.

Waterworks Trusts were empowered to make and levy rates upon the owners or occupiers of all lands and tenements within its waterworks district in order to meet its loan repayments, maintain its waterworks effectively, extend its waterworks if this was approved by the Governor-in-Council, and pay expenses incurred in performing the acts required by the various Water Acts of Waterworks Trusts. Rates were to be made annually. Waterworks Trusts were to be audited regularly, and were required to keep and maintain accurate accounts. Annual statements were to be made as soon as possible after the 31st of December for each year. A special meeting for the purpose of settling all accounts was to be held two months after the completion of each audit.

Waterworks Trusts could be dissolved upon receipt of a petition signed by the majority of the ratepayers within the district of a waterworks trust by the Governor-in-Council.

The Leongatha Waterworks Trust became incorporated into the Leongatha Water Board (VA 2235) from the 1st of July 1984.