A 17-year-old boy has appeared in a Children's Court, accused of deliberately setting a house alight and drug trafficking.
The court heard the boy was at the house alone in the early hours of December 1 when he allegedly started the house fire.
A witness told police she heard smashing and glass breaking, and saw flames through the window.
The boy was later seen by police carrying personal possessions, but when they approached he allegedly fled.
Investigation of the home revealed there were two fires - in the bedroom and kitchen - which caused extensive damage.
A match or lighter was determined to be the probable source.
The house belonged to an accommodation provider.
More court news: Far-right extremist loses appeal against conviction
After his arrest, the boy told police he was not at the home at the time, denied knowledge of the fire, and denied causing other damage.
Police allegedly found in his possession small ziplock bags of ecstasy, cannabis and a white powder believed to be methamphetamine, tick sheets, and scales and weights.
The boy has also been charged with bail offences.
His defence lawyer made an application for bail on his behalf, stressing that the allegations were as yet all unproven and therefore he had an "expectation to the right of liberty".
He said the teenager wanted to "get back to a normal life".
The lawyer said the magistrate could put in place bail conditions that would ameliorate any risks.
But the police prosecutor submitted the teenager posed a risk, while the informant said there were no conditions that could be put in place that would alleviate her concerns.
The magistrate found the boy posed an unacceptable risk of offending while on bail at this time.
The teenager was refused bail and remanded in custody to appear in a Children's Court next month.
Have you signed up to the Bendigo Advertiser's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in central Victoria.
Sign up for our newsletter to stay up to date.