Pupils from Warrnambool West Primary School and Port Fairy Consolidated School joined archaeologists from Heritage Victoria for the dig at the site, which dates back to the state's early colonial days.

Also taking part were the four winners of The Standard's 'Archaeologist for a Day' competition.

Arthur Watson, 8, Damian Moloney, 27, Helen Fennesy, 54, and Hugh Mitchell, 13, were selected to take part in the two-day dig after submitting their creative entries.

Just hours into the excavation, a range of items from Warrnambool's rich heritage had been unearthed, sifted and cleaned for closer examination.

Squeals of excitement and speculation about the origin of items could be heard across the site as pieces of tea cups, bottles, bones, ceramics, glass and metal were uncovered.

Heritage Victoria senior archaeologist Jeremy Smith said it was great to see the youngsters so excited about the project.

"I really relate to the thrill of discovery archaeology brings," he said.

"It's a very exciting way to do things and I like seeing the enthusiasm of kids as they come along.

"It's great to hear them speculate about what they think they've found."

While the dig was a fun learning experience for all involved, Mr Smith said it also aimed to raise awareness about the importance of archaeology.

"I hope we get one or two careers from this," he said.

"Archaeological remains are a physical reminder of our heritage, of the people who shaped our landscape and towns."

About 125 pupils will take part in the dig, which continues today at the Flume car park off Merri St.

Interested community members are also able to observe the dig at close quarters and speak to archaeologists on site.

The excavation is taking place with the support of the Warrnambool City Council, with archaeology firm DIG International overseeing the project for Heritage Victoria.