Featuring Sun Loong dancing through Pall Mall at Easter, the painting was donated by the Sandhurst Trustees.

Titled Bendigo Easter Festival 1979, it was painted by Charles Bush. It was commissioned by the Sandhurst Trustees and hung in their View Street building for more than 40 years.

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Sandhurst Trustees chair Jenny Dawson said she was thrilled to help ensure that the painting remained in Bendigo and became part of the Golden Dragon Museum's collection.

"(It) is one of three works commissioned by Sandhurst Trustees directors in the late 1970s," she said.

"At that time, the directors requested the commissioned artists to paint items of their choosing reflective of the local area.

"For the past 40 years the painting has hung in the reception area of our View Street building which we recently sold and vacated. In moving out we wanted to ensure that significant items of historical value found new owners that will care and look after them for the benefit of future generations."

Golden Dragon Museum chief executive Hugo Leschen said the painting was unmistakably Bendigo.

"It's got everything. The iconic dragon from that time, Sun Loong, is 'the' dragon for many people," Mr Leschen said. "It's unmistakably Bendigo because you can see the fountain and all the colour, movement and vibrancy that is the Easter festival.

"If you are looking for a painting that screamed Bendigo - this is it."

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Golden Dragon Museum board chair Doug Lougoon thanked Sandhurst Trustees for their generous and thoughtful gift.

"The support of the community, leading companies, local businesses and donors over many years has helped Golden Dragon Museum grow and develop into an internationally acknowledged centre of Chinese arts and culture," he said. "This gift continues that growth."