South-west residents will be hit with a $200 fine if caught not wearing a mask or facial covering in public from Monday.
Victorian Premier Daniel Andrews confirmed on Thursday afternoon the fines would apply.
He said the state government had ordered 2.5 million reusable face masks and would look to source more to meet demand.
Mr Andrews said people could wear a scarf of a bandana or make their own mask.
In addition to that masks will be distributed at secondary schools while children under the age of 12 do not have to wear a mask.
He said residents in Colac-Otway Shire would not be permitted to visit another person's home or have guests from Friday.
Mr Andrews clarified the shire was not in lockdown, instead he said these preventative measures aimed to stop the spread of the virus from household-to-household.
He said the number of coronavirus cases in regional Victoria remained low and the measures aimed to prevent further spread.
"The numbers are low and we have to keep them that way and that's why we are taking what are essentially precautionary measures," Mr Andrews said. "That together with masks from Sunday night will have a direct impact."
Mr Andrews said there were exceptions, with people able to visit other homes if they shared custody of a child, to care for another person or to visit a partner.
Mr Andrews said there were no immediate plans to change restrictions around gatherings in public.
When attending a cafe or restaurant, the rule is that masks or face coverings need to be worn while standing but once a person is seated at a table they are permitted to remove their mask.
Mr Andrews said there would be no further changes to restrictions at schools but that - along with other measures - was subject to change.
He said he was reluctant to introduce a statewide lockdown because he didn't think that was necessary in areas where there were very low or no cases of COVID-19.
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