Community complaints have forced one mining company to check for contaminated water near its Bendigo mine site.

Victorian Government officials have ordered tests of water supplies after residents near the Costerfield mine complained that dust from the facility has been polluting their water.

Locals say the hazards streaming from the Mandalay Resources gold and antimony mine pose a serious health risk.

John Mitas from the Department of State Development, Business and Innovation says officials have met to discuss the issues, with formal tests to begin soon.

“There's been a number of tests that's been recommended to actually make some further assessments on those health risks to the community,” Mr Mitas told reporters.

“In the meantime the mine has agreed to [from today] provide drinking water to all residents affected within 1.5 kilometres,” he said.

A sheep farmer was one of the first to raise concerns, and 53-year-old grazier Neil Harris is now encouraging all locals to have health checks.

“It's very concerning,” he told the Bendigo Advertiser, after receiving a urine test showing more than 20 times the recommended level of antimony.

Mandalay Resources says it has been working closely with the Department of Health and the Mines Department, and says a dust monitoring program is in place.