Mount Alexander Shire council named the road Harmony Way after Henry Harmony Nelson - who was born in the 1850s and was influential in supporting the "significant Aboriginal leaders of his day".

Mayor Michael Redden said it was a momentous occasion for all people living on Dja Dja Wurrung land. 

"The construction of the new Calder Freeway provided an opportunity to rename the section of road," he said. 

"During consultation with the community the name of Harmony Way was proposed and we agreed to it.

"This significant honour provides lasting recognition of Henry Harmony Nelson - a prominent figure in the history of the Dja Dja Wurrung people."

A small group of people gathered at Harcourt on Thursday for the official unveiling of a special naming plaque as part of NAIDOC week.  

Rick Nelson, a descendant of Henry Harmony Nelson, said the decision to rename the road after an Aboriginal man meant a lot to the Dja Dja Wurrung people, the local Indigenous community and the Nelson family. 

"I know if my father could be here today he would be beaming with pride, happiness and honour," he said. 

"I would like to thank the Mount Alexander Shire and Mayor Redden for supporting such a monumental proposal as the naming of this road after an Aboriginal man."

NAIDOC week celebrations will continue today at the Loddon Prison among other ceremonies and events.