During the early 1940's, members of the Erica Division of the SCV began investigating the skiing potential of the Baw Baw Plateau, much of which is around 1500m altitude. The Mt. Erica Division of the SCV in 1945 built a 9m by 5m hut on the headwaters of the East Tanjil River (Area A, Photo No.14) about 800m from the Baw Baw summit. The hut was equipped with 18 bunks just prior to the start of the 1946 ski season. The Mt. Erica Division ran regular fortnightly bus trips from Yallourn to Baw Baw in the 1946 ski season and on some days had as many as 150 people on the field (SYB 1947).

Following a visit by the State Development Committee to Mt. Baw Baw and all other Victorian snowfields in 1950, a report on the Alpine Regions of Victoria was prepared and presented to the Victorian Parliament in July 1950. The committee recommended the development of Mt. Baw Baw as a ski resort. Following a September 1950 visit by two Ministers in the Victorian Cabinet (T.W. Mitchell and W.O. Fulton), it was considered that the ski village should include both areas A and B on the map below (Photo No.14)

Further development at Baw Baw was restricted by the lack of an all-weather road onto the plateau at the proposed village site, for a further twelve years. Such a road was only completed in 1962. The Mt. Baw Baw Ski Club was still the only club to have a lodge in the Baw Baw Village in 1963.