The first bolt of Bendigo’s own tartan was rolled out in Rosalind Park on Wednesday.
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Scots Day Out director Chris Earl officially unveiled the design, declaring it was a way to bring people together.
"Tartans, historically, have been a flag of a community, a flag of a good people,” he said.
“The Bendigo tartan is now one of those very powerful flags."
The design was registered with the Scottish Tartans Authority after the council agreed to adopt the fabric last year.
It is the world’s 11,359th official tartan.
Mr Earl said the design symbolised the city's environmental assets.
The blue and white represented the sky and mullock heaps, the reds were symbolic of the earth and the sun, and green signified the forest surrounding Bendigo.
"Binding all of those together is the gold. Gold is a colour of hope and it tells the story that Bendigo as we know it had its foundations on gold," he said.
“It's very much about the pride and identity of a great city, a great regional city.”
Also announced at the ceremony was the chieftain for next month’s Scots Day Out, with Bendigo’s executive manager of tourism, Kathryn Mackenzie, chosen as the event’s figurehead for 2016.
“I’m a passionate Scot,” Ms Mackenzie told the Bendigo Advertiser.
“I'm a Mackenzie, my grandmother was a Stewart, so it runs through my veins.”
She said both the tartan and Scots Day Out celebrated the city’s diversity.
“Bendigo being founded on gold, so many immigrants came to this city and I think we are showcasing not only our history, but our contemporary livability,” she said.
“It’s a vibrant tartan and I think it really showcases the contemporary element of the city.
“We're proud of our past, but our future as well.”
The city’s Scottish community received another boost earlier this month when it was announced Scotland’s tourism chief, Mike Cantlay, would attend Scots Day Out.
Mr Earl said he hoped Mr Cantlay’s visit will forge stronger ties between Bendigo and its northern neighbour in the fields of health and education.