[1][2] The tunnel is in the Pound Bend section of the Warrandyte State Park.
The returns approximated the costs involved, the company never paid a dividend and was wound up in September 1872.
[4] In 1884 the idea of using the tunnel to generate electricity was proposed, and in 1888 a company was formed for that purpose.
The idea arose again in the 1920s, this time to supply the Warrandyte community, which was not able to fund the provision of power through the State Electricity Commission of Victoria.
Due to the river's strong currents and the tunnel often trapping fallen branches creating a hazard, as well as frequent flooding causing the tunnel to fill with water, it has become a dangerous and often fatal place to swim or fall into, with a death occurring at the site in November 2004.