Travel between regional Victoria and metropolitan Melbourne will be allowed from November 9.
The change was part of a number of eased restrictions announced by Premier Daniel Andrews on Monday afternoon.
"From (11.59pm on) November 8, and if we can continue driving case numbers down, the 25 kilometre limit will come off and Melbourne will be able to meet regional Victoria at the same level," Mr Andrews said.
The announcement came after Victoria recorded zero new cases since Sunday.
"Fundamentally this belongs to every Victorian who followed the rules," Mr Andrews said.
"The last time Victoria had zero cases was June 9, 139 days ago. These are big steps. I am so proud, impressed and humbled that so many Victorian families have made (this possible).
"(But it's) not over, this virus is not going away. It will be a feature of our lives every day until a vaccine turns up. We have to take responsibility to stay safe and open.
"Until a vaccine comes, there is no normal, there is only COVID-normal."
Mr Andrews said he planned to announce details of what a COVID-safe Christmas would look like on November 8.
"COVID safety is still critical and we need a bit extra time (to) align regional and metropolitan Victoria," he said.
"We will be able to provide more detail if we wait the next 10 days or so and (hope to) provide a more complete picture of what the rest of year (looks like).
"We want to reach COVID Normal by Christmas and right now, we're on track to do that. It's why we've got to keep going - all of us. Understanding that even though restrictions may ease, our personal responsibility in all this doesn't."
From 11.59pm on Tuesday, Melbourne residents will have stay at home restrictions removed as they move to the third step of the COVID-19 recovery roadmap.
"I know it's frustrating, but this is about making sure that even as we ease restrictions, we're limiting the virus's ability to travel," Mr Andrews said.
"It's why the border between regional Victoria and Melbourne will also remain in place - for just a bit longer."
Victoria had 91 active cases remaining on Monday. Two cases were in regional Victoria - both in the Greater Shepparton area. Regional Victoria's 14-day average number of cases is 0.2. In Melbourne it is 3.6.
From Wednesday, people will be able to visit other homes but more details on those restrictions will be announced on Tuesday.
"As we've seen, this virus is at its most dangerous when we're indoors and relaxed and comfortable," Mr Andrews said.
"It's why we're going to take the next 24 hours to understand how we might be able to make this work - safely - and I'll have more to say about this tomorrow."
Melbourne hospitality businesses will reopen and be able to host a limit of up to 50 outdoors and 20 people indoors.
They must maintain density limits and have COVID-safe plans.
All retails will open and beauty and personal care services can resume. Staff can go on site straight away to prepare to reopen a business.
Outdoor contact sport for under-18 participants and non-contact sports for adults can also restart in Melbourne along with personal training, fitness and dance classes, with a limit of 10 people.
Faith gatherings of up to 20 people outdoors and 10 indoors, with a faith leader, can return.
Weddings will increase to 10 people, and funerals up to 20.
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