Data released by the Australian Bureau of Statistics (ABS) has revealed that the Baw Baw Shire had the third highest population growth rate in regional Victoria in the last financial year.
The population grew by 3.1 per cent, bringing the total number of people living in the area up from 54,866 to 56,583.
Warragul and Drouin play host to the majority of the region's population. Combined, the towns grew by 3.7 per cent, and now have a combined population of 42,115, up from the previous financial year's 40,631 people.
Nearby local government areas also experienced growth, but not to the extent Baw Baw has. Cardinia's population increased by 2.2 per cent, South Gippsland increased by 0.7 per cent, and Latrobe increased by 0.3 per cent.
Baw Baw Shire Mayor Michael Leaney said Baw Baw's numbers are likely to continue rising.
"This staggering data highlights what we already know – Baw Baw is growing fast," he said.
"It is important to note, these figures are reflective of the current data available. Projections show these numbers will continue to rise into the future and that's why advocacy is our top priority."
Cr Leaney said the ongoing growth presents many challenges for the community, and the Council is committed to making the region a better place to live.
"We want our community to rest assured that we are out there advocating to local, state and federal representatives seeking meaningful support for more infrastructure and services for our shire – whether it's social infrastructure like a new library hub or better sporting facilities, our work to seek commitment to fix the out-dated State-managed arterial road network, or even our active support for a new hospital for our region," he said.
The ABS reported that overall, the number of people living in Melbourne declined by 1.2 per cent, the largest decrease of all capital cities during the 12-month period. This follows a nationwide trend that saw the number of people living in capital cities decrease by 0.1 per cent.
ABS Director of Demography Beidar Cho said the migration to regional areas is due to the pandemic.
"This is the first time since 1981 that Australia's regional population grew more than the capital cities, due to changing migration patterns during the pandemic," he said.
Contributing factors to this change reported by the ABS, are international border closures and increased movements to the regions.
This is the first time the ABS has recorded an overall decline in population in the capital cities.