Local government has existed in Victoria since before its separation from
New South Wales in 1851. The
Town of Melbourne was established by an Act of the NSW Governor and Legislative Council in 1842 and the
Borough of Geelong was established in 1849. Both bodies continued after the creation of Victoria as a separate colony, and both later became cities.
Road districts were established under legislation passed in 1853. From 1862 many road districts became shires pursuant to the
District Councils Bill 1862. To become a shire, the road district had to be over in size and have annual rate revenue of over £1000. There were 96 road districts or shires created by 1865. The first Victorian general Act dealing with local government was the Local Government Act of 1874. The act empowered shires to be established in territories that could financially support them, and boroughs to be established in areas not exceeding with a population of at least 300. Promotion to town or city status was dependent upon the gross revenue of the council. Promotion was not automatic, but it was granted often. Local government has been referred to in the Victorian constitution since 1979 (sec. IIA). It does not operate as to make Victoria a federation or protect the borders or powers of local government from amendment by executive order or act of parliament. Today, the constitution recognises it "a distinct and essential tier of government" and prohibits a council being dismissed by executive order, but grants significant powers to the state parliament in respect of local government. The clauses have been amended many times by parliament, but since 2006 the
Constitution Act has required a referendum to further alter them. The Local Government Act 1989 eliminated administrative distinctions between cities and shires, introduced the category of rural city and removed the possibility of declaring any further boroughs or towns. Existing boroughs and towns were retained, although only one, the
Borough of Queenscliffe, remains today, the others being abolished with the 1994 restructure. Between 1989 and 1994, five shires became rural cities. By 1992, there were 210 municipalities in Victoria. In 1994, the
Jeff Kennett government restructured local government in Victoria. His reforms dissolved 209 of the 210 councils (excluding the Borough of Queenscliffe), sacking 1600 elected councillors in the process, and created 78 new councils through amalgamations. In suburban
Melbourne 53 municipalities were reduced to 26. The new local government areas (LGAs) were headed by commissioners appointed by the State Government. Democratically elected councils returned in 1996. Since the 1994 reforms, there have been only a handful of significant changes to Victoria's LGA map: • In 1996, the
Yallourn Works Area, which had been under direct State control for several decades, was absorbed into the
Shire of La Trobe. • The
Docklands area was excised from the City of Melbourne in 1999 and remained outside its boundaries until 2007. During this period, the Docklands Authority, a State Government body, took on most municipal functions in the precinct. • In 2002, a 79th LGA was created when the
Delatite Shire was split into the
Rural City of Benalla and the
Shire of Mansfield. A new City of
Sunbury was proposed to be created from part of the
City of Hume after the 2016 council elections, but this was abandoned by the Victorian Government in October 2015. The
Local Government Act 2020 reformed the electoral systems used by LGAs, abolishing multi-member wards in urban areas and replacing them with single-member wards. == General characteristics ==