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It has a strong resemblance to a Shot Tower like they have in Tassie
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Shot towers are a tad higher than that (the one in hobart is 48 Metres tall = 157ft 6 inches in the old measurement. Here's a water tower similar at evandale. Then again it could have been for grain storage or even some form of kiln. Here's some info on how water towers were constructed.
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Heritage Victoria provided information on 15 registered sites with water
towers or water tanks. Most have square or rectangular cast-iron tanks on brick or stone bases. A few have circular rivetted iron tanks on circular brick bases, but only two sites were found with water towers directly comparable with Millard Street, namely at Benalla (see below), and at Sunbury. Sunbury Railway Station has a circular rivetted cylindrical steel or iron tank on a steel or iron tower, built 1887. It has a Heritage Victoria file, but is not on the Register, and 1 could not get much information about it.
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If it was a water tower the steel or corrugaqred iron top has probably rusted away.