The new bus has a low floor, allowing the elderly, people with disabilities and those with prams to board with ease, replacing the older vehicle which had become increasingly unreliable.

It seats 45 and has reliable air conditioning.

On Thursday morning, Member for Bendigo East and Victorian Public Transport Minister Jacinta Allan handed over the keys of the bus to the Whitmore Group, which operates Strath Transit.

Director Jamie Whitmore said the bus will be a boost for the local commuter service.

"It's fantastic to have a new bus to provide a better service to our customers," he said.

"This will set up Strath Transit for years to come, so our service can grow as patronage and the local community does."

The bus was funded through PTV's bus replacement program.

Jacinta Allan said as Strathfieldsaye continues to be one of Bendigo's fastest growing areas, it was important to invest in the basics like better buses.

"The new bus will provide a safer, more reliable journey for the more than 100 people that use the Strath Transit service every weekday," she said.