UPDATE 2.54pm: A female driver in her 70s has been taken to hospital in a stable condition after the collision on the corner of Lucan and Arnold streets.
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An Ambulance Victoria spokesperson said the woman was transported to Bendigo hospital after complaining of leg pain, chest soreness and suffering shock.
UPDATE 2.50pm: Two cars have collided at the intersection of Lucan and Arnold Streets in Bendigo.
Sergeant Della Nihill said an elderly woman was travelling west on Lucan Street and failed to give way to a vehicle while turning right into Arnold Street.
Sergeant Nihill said the elderly woman suffered some injuries but was conscious and breathing.
Both vehicles will be towed.
Police will conduct further investigations into the how the collision occurred.
South-bound traffic on Arnold Street is blocked by emergency vehicles and police are directing traffic in all other directions.
EARLIER: Emergency services are attending the scene of a collision in Lucan Street, Bendigo.
Traffic should avoid the area near the intersection of Arnold and Barnard streets.
More to come.