The total population grew by 0.9 per cent to 34,555 from June 2016 to June 2017.

Warrnambool mayor Robert Anderson said he was pleased with this result, but believes the city has great potential to grow.

He said one factor driving the growth was the fact the city was “one of the most liveable” in Victoria.

“We’ve got a great lifestyle down here,” Councillor Andreson said.

However, he believes improvements to the region’s roads and rail network would help make it a more attractive place to live.

“We’re always striving to attract more people and we believe there are 1000 skilled and unskilled jobs in the area that we are trying to get people down to Warrnambool to fill,” Cr Anderson said.

He said there was a skill shortage when it came to electricians and mechanics.

“Our main drive is to try to get families to relocate down here to Warrnambool,” he said.

Colac Otway Shire experienced a 0.4 per cent population growth, with 21,436 people now calling the area home.

Moyne Shire experienced an 0.3 per cent population increase from 2016 to 2017, with 16,741 people calling the shire home.

Shires which experienced a decline in population included Glenelg, which recorded an 0.4 per cent drop, Corangmite, which experienced an 0.3 per cent drop and Southern Grampians, which recorded an 0.1 per cent decline. 

In comparison, Ballarat’s population increased by 1.9 per cent and Greater Bendigo’s increased by 1.6 per cent.

Victoria continued to be a popular state to live in, with the population increasing by 2.3 per cent.

Melbourne had the largest growth of all Greater Capital Cities (125,400), followed by Sydney (101,600) and Brisbane (48,000).

Together, these three cities accounted for more than 70 per cent of Australia's population growth in 2016-17.