The decision comes days after community members and Hepburn Mayor Licia Kokocinski raised concerns about the numbers of shoppers who descended on the market last Sunday.

In a statement posted on social media, market organisers blamed increased attention on the town in forcing their hand to cancel the market for at least two weeks.

"Due to today seeing the highest level of community transmission of (COVID-19) yet in Victoria, the inundation of Daylesford at the moment, the recent press that will almost certainly see even more coming and new restrictions we have decided that the safest option for our community is to close the market for the next two weeks," the statement said.

"We will not run as a food only market. After this time we will re-evaluate. We hope that all of our stallholders and the community understand that this was a very difficult decision to make."

It comes as the Hepburn Shire announced plans to focus on tourists doing the right thing by implementing new street signage, an updated social media campaign and ensuring the risks associated with the virus are minimised.

"Tourism is a very important part of our local economy. We welcome visitors to our Shire, and the many attractions it offers," Cr Kokocinski said.

"We also understand the concerns of our Shire's local residents that we maintain a COVID-19 safe environment. Social distancing and good hygiene are the best way to minimise the spread of the virus.

"It's important to keep up-to-date on the latest advice and restrictions from the state government, as they are changing almost weekly. While we welcome visitors to our beautiful shire, people from the Melbourne metropolitan "hot zones" should stay at home, as directed by the Premier.

"Compensation has been made available to accommodation businesses affected by cancellations as a result of the recent lockdown of these particular suburbs."

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Chief executive of Daylesford Macedon Tourism Steve Wroe said many of the region's best-loved spots, like the main streets of towns, markets and shops, are currently so popular, that maintaining social distancing is very difficult.

"We welcome visitors but ask that they bear in mind the issues that our popularity brings. We have many amazing walks in the region and aside from the benefits of a good bush walk, the trails are not crowded, and social distancing is much easier," Mr Wroe said.

"Our world-class accommodation means that 'staying in' is a great option too. Light the fire, open a bottle of wine or a book and relax. Wellness, nature and rejuvenation are what we are all about."