The Australian Country Alliance announced Ms Chapman as its candidate for Bendigo West on Wednesday, putting her head-to-head with current MP Maree Edwards, Bendigo Health chairman Michael Langdon and former Benalla mayor John Brownstein.

Ms Chapman said she was happy to carry comments she had made in the media and on Twitter about Muslims and climate change into her election campaign.

"I've got thick skin, I'm not going to be pushed around. I think I've proved that on a number of occasions," she said.

"It's each to their own really. Everyone is entitled to their opinion."

She will campaign on reforming local government, tackling foreign ownership of land and food imports.

The Lockwood Ward councillor said she disputed Australian Bureau of Statistics figures in June that 99 per cent of Australian farm businesses are fully Australian owned.

"On a title it doesn't show who's Australian or who isn't, I have no idea how they would have come up with that number," Ms Chapman said.

"It's the size of the property that they are owning that is a concern."

The Australian Country Alliance was formed when the Victorian arm of the Katter's Australian Party broke away and joined the former Country Alliance.

Northern Victoria candidate Robert Danieli said the party was quite comfortable to handle "name calling" from its political opponents, and Ms Chapman would be allowed to continue to voice her opinions on social media.

"She's entitled to her opinions. Sometimes when people talk on Twitter they might get carried away, especially when they have trolls constantly hassling them," he said.

"When people are labeling us as extremists, they really need to look in the mirror.

"Various groups are already having a crack at us."

The City of Greater Bendigo confirmed Ms Chapman was not required to ask for a leave of absence.

Mayor Barry Lyons said council's Code of Conduct made it clear there were no issue with councillors running in state elections.

"I think it's straight forward, really," he said.

"As long as she separates electioneering from her work on the council, there won't be a problem.

"Obviously if she got elected she would have to step down from council."

Cr Lyons said this was the first instance of a councillor running for a state of federal seat during his time with the City of Greater Bendigo.

The Municipal Association of Victoria's guidelines recommend a councillor submit a leave of absence should they run in an election.

Liberal Party candidate for Bendigo West Michael Langdon said Ms Chapman's candidacy would have no impact on his campaign in the seat.