Club President Dario Prighel said the nomination reflected the dedication of the club's volunteers, coaches, committee members, parents and swimmers.
"Being nominated for this award is an incredible honour," Mr Prighel said.
Run entirely by volunteers, the club has grown to around 100 members and continues to provide opportunities for swimmers of all ages and abilities, while producing athletes who compete successfully at district, country, state and national levels.
A key factor in the club's success has been its emphasis on developing young people beyond the pool. Through Swimming Victoria's Beyond the Pool program, swimmers are encouraged to build leadership, communication and life skills that extend well beyond competition.
Many participants have progressed into roles as club captains, mentors, coaches and lifeguards, helping strengthen both the club and the wider community.
Long-serving coaches Kevin White and Lyndon Hart have played a significant role in the club's development and success, caught the praise of Mr Prighel. "It is a reflection of the commitment and passion that our coaches, committee, parents and swimmers have shown for more than 30 years.
The club has also earned a strong reputation for community involvement, raising more than $10,000 for the Sunshine Trust through its Sunshine Swim fundraiser over the past two years, while supporting local schools, community events and the Tri State Games.
Adding to a successful season, the club won the Ovens and Murray District Swimming Association March Past competition for a record 30th consecutive year. Secretary Renee Cox was also recognised at state level last year as a finalist in the Swimming Victoria Volunteer of the Year Award.
Winners of the Swimming Victoria Awards will be announced on August 14, with the Yarrawonga Mulwala Swimming Club already celebrating the honour of being recognised among the state's leading swimming organisations.
Regardless of the outcome, being named a finalist is a significant achievement and a testament to the positive contribution the Yarrawonga Mulwala Swimming Club continues to make to both the local community and the sport of swimming throughout Victoria.