Local government in the Australian state of Victoria describes the 79 municipal districts often referred to as local government areas (LGAs). They are constituted as cities (33), shires (39), rural cities (6) and, in one case, a borough. In addition to the LGAs, there are also 10 coastal islands and ski resorts which are unincorporated areas and administered either by the state or management boards. At present, the councils not controlled by administrators have a total of 611 councillors. After the elections in October 2016, this number will increase due to changes in electoral structure and administrators leaving some councils.
Up till 1994 there had been 210 LGAs, when Jeff Kennett, the Premier at the time, oversaw amalgamations to reduce the number to 78. The councils of Benalla and Mansfield split subsequent to this to arrive at the current number.
Local government existed in Victoria since before its separation from New South Wales in 1851, with the Town of Melbourne being established by an act of the NSW Governor and legislative council in 1842 and the Borough of Geelong being established in 1849. Both bodies continued after the creation of Victoria as a separate colony, and both later became cities. Road districts were established pursuant to legislation passed in 1853. From 1862 many road districts became shires pursuant to the District Councils Bill 1862. To become a shire, the road district had to be over 100 square miles (260 km2) in size and have annual rate revenue of over £1000. There were 96 road districts or shires created by 1865. The first Victorian general Act dealing with local government was the Local Government Act 1874, which empowered shires to be established in territories that could financially support them, and boroughs to be established in areas not exceeding 9 square miles (23 km2) with a population of at least 300. Promotion to town or city status was dependent on the gross revenue of the council. Such promotion was not automatic, but it was granted often.