A Nazi flag for sale by a stallholder at Bendigo Pottery's antiques and collectibles centre last weekend has been condemned by Believe in Bendigo, a group promoting diversity and inclusion.
Believe in Bendigo spokesperson Anthony Radford said the sale of a Nazi flag in Bendigo was disgusting.
"It's not a viewpoint that is welcome here or anywhere," Mr Radford said.
"It does show that we have to stay vigilant, because we know these kinds of things are out there."
Bendigo Pottery's antiques and collectibles centre hosts numerous stallholders at its Epsom site.
With more than 40 individual site holders, the centre is open daily and includes pottery, paintings, collectibles, glassware, jewellery and vintage clothing.
Bendigo Pottery co-owner Sally Thomson said management were unaware of the presence of the Nazi flag on its premises.
"We were unaware of the presence of the flag, which was folded and sitting in the bottom of a cupboard," Ms Thomson said.
"We were not made aware of its presence.
"It was removed and stallholders have been made aware of the inappropriate nature of such items."
Mr Radford welcomed the pottery's swift response.
"I praise Bendigo Pottery for realising this kind of thing isn't acceptable and doesn't belong in Bendigo.
"It shows people are prepared to stand up when these things happen."