Campaspe Shire councillor and dairy farmer Neil Pankhurst said the decision was a good outcome for the agriculture sector.

“There’s certainly been lots of concern from an agricultural point of view about the potential impact on agricultural land,” he said.

“In this part of the state we’re certainly very reliant on irrigation for our agriculture so anything that potentially threatens that is something that needs to be monitored fairly carefully.

“I'm certainly comfortable with the decision.”

The Campaspe Shire council made a submission to a government inquiry on unconventional gas in August last year, citing concerns about potential impacts on agriculture, food processing, manufacturing and tourism.

“Agriculture and related manufacturing are the key drivers of our economy, so council is strongly committed to continue its unwavering position to protect our viable agricultural land and water resources,” mayor Leigh Wilson said at the time.

“Tourism is also a major contributor to the economy, with the Murray River being the major draw card. This adds more weight to our concern about the possible potential impacts of unconventional gas exploration and we will do all that we can to keep safe the livelihoods of our residents and businesses, and the future prosperity of the region.”

The Bendigo Sustainability Group also welcomed the government’s decision, which BSG president Chris Weir described as “great news”.

“Our understanding is that fracking has created long-lasting issues for the land owners around the fracking site,” he said.

“Whilst it might be a quick fix to get the gas out, we’re concerned about the long-term impact on the water, so we think it’s a great decision by the government to knock back the fracking.”

The Australian Climate Council also threw its weight behind the move and encouraged other state and territories to follow the Andrews’ government’s lead.

“We need to leave over half of the known commercially viable conventional gas sources in the ground if we are to limit global warming to less than 2 degrees Celsius – this means gas needs to contract and phase out, not expand”, the council’s Will Steffen said.

“We congratulate the Victorian government for recognising that tackling climate change and protecting Victoria’s future does not lie in simply switching from one fossil fuel to another.”

The ban is due to take effect later this year, with exemptions for gas storage and carbon storage research.