Basaltic eruptions across the Central Highlands of Victoria have sealed in-place Early to middle Cenozoic palaeodrainage systems (also known as deep leads). The basal gravels of the deep leads have been mined extensively in the past for their rich placer-gold deposits. Detailed mapping of the distribution of all palaeorivers has been carried out using drilling results and modern aeromagnetic/ radiometric surveys. The palaeochannel isopachs (including basalt and sediment) do not thicken in a modern downvalley direction. Instead, deeper depressions alternate with shallower areas. The variations in thickness, and parts of the palaeochannel courses, are controlled by a series of eastnortheast-trending basement highs. The basement highs are caused by a set of east-northeast-trending (Otway Basin-style) faults visible on radar shuttle imagery in the Central Highlands. They have not previously been recognised in regional geological mapping. Most published fault trends are northsouth oriented, parallel to the strike of the Palaeozoic basement rocks. Exceptions occur at Ballarat where there is an orthogonal east-northeast set mapped in underground quartz reef workings that show right-lateral strike-slip movements. The east-northeast faults show half-graben block-style rotational movement on basement, creating north-and south-facing fault scarps along the horst ridges. Where palaeochannels overlie the grabens, valleys broadened, infill thickens, and locally drainage directions may change. When the drainage cuts through the horsts, steeper incised valleys result, and this is where, in the historical past, some gold leads were 'lost'. The initial timing of the block movement pre-dates at least the Early Oligocene to Late Miocene ages of the basal palaeovalley sediments, as shown by revised palynological dating. In places, the modern drainage divide coincides with east-northeast-trending faults. In the Ballarat area, an earlier divide accentuated by the aeromagnetic palaeodrainage mapping occurs up to 25 km south and appears to pre-date the earliest basalt flows at around 7.0 Ma. This evidence suggests the divide can change position through time by differential movements along east-northeast faults and transferral of maximum uplift to adjacent blocks.