Koroit police Sergeant Pat Day said an incident unfolded at 3.15pm on Saturday in Koroit's Commercial Road.

"All parties known to each other and there was an assault in the street," he said.

"A man was punched in the face. The female offender then got into her car, rammed his ute and drove away.

"It could be described as a family violence incident. All parties are known to each other, it was a chance encounter and it got very heated very quickly."

The policeman said the 47 year-old Koroit woman was arrested, interviewed, charged and bailed to appear in Warrnambool court at a later date.

She has been charged with assault, making threats to kill, conduct endanger serious injury, driving in a dangerous manner and leaving the scene of an accident.

"The victim, a 49-year-old man, is not a local resident," Sergeant Day said.

"He was just standing out the front of a business, the woman spotted him, they argued, she punched him to the face and there was a scuffle.

"She then got in her blue Ford sedan and rammed his blue Ford utility while he was sitting in it.

"There's been a long-standing family dispute."

Sergeant Day said it was disappointing that the incident had played out in the main street of Koroit.

The victim suffered minor cuts to his face and neck.

His ute received significant damage and the radiator was punctured.

Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.