Queues to the Seanchai Irish Pub stretched more than 150 metres up Liebig Street on Saturday night and restaurants were full as residents celebrated the end of COVID-19 capacity limits.
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Seanchai Irish Pub owner Matt McMahon said there were "big queues" all night and it was great to see people out enjoying themselves.
"It was a really good crowd," Mr McMahon said. "Everyone was in good spirits and happy to be out.
"It was really good - positive vibes and no trouble makers. Usually if you get massive crowds you get a few troublemakers but everyone was in positive spirits and freedom day was alive."
Duo Mitch and Jackson Music played at the venue, which had 500 people over its two levels. Musician Jackson Greene said it was the funnest night he'd had in a long time and the smiles on people's faces said it all.
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"There was people everywhere and everyone was there to have fun and have a great time," Mr Greene said. "The dance floor was full the whole night. It was awesome."
The Hairy Goat owner Jade Kelson said the street was "really busy" and it was great to see restaurants and hotels full of people who were happy to be out.
He said his restaurant was at capacity and others were also booked out as they welcomed more patrons back.
"There were people everywhere," Mr Kelson said. "There was a line up for the Seanchai at 9.30pm that went to Harris and Wood. It was huge. The town was buzzing, it was really good."
He said all of the outdoor dining areas were "packed" and it was good to see them all busy again. "It was great to walk out and see the street busy from corner to corner."
Warrnambool, Portland and Hamilton police praised behaviour and said while their respective CBDs were busy with people enjoying themselves, there were no issues and were hopeful it would continue.
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