Cr Chambers, 78, suffered a heart attack and died in Rome at the weekend.

Flags outside the Beechworth council offices were lowered to half-mast on Monday as a mark of respect to Cr Chambers, who was first elected to council in 1997 and was mayor in 1999 and 2000.

Cr Chambers was involved in a myriad of community organisations outside council including Keep Australia Beautiful at national and state levels.

He had recently become engaged to former girl-friend, Lori Templeton-Albanese, who was living in Italy.

Her husband had died around the same time as Cr Chambers’ wife of 52 years, Margaret, in 2012.

Cr Chambers' brother Jim said the family was still coming to terms with his unexpected passing.

"We are very shocked and sad," he said.

"He was offering so much and still had so much to offer.

"We are going to miss him enormously."

Cr Chambers was one of seven boys in one of Rutherglen's famous wine producing families.

The eldest brother Bill operates Chambers Rosewood winery with the others being Ken (deceased), Peter (deceased), John, Jim and Bob.

Cr Chambers and his late wife had five children, Brian, Jenny, twins Mark and David and Simon.

Brian, who lives in the UK, is assisting in the return of Mr Chambers’ body to Australia.

Indigo Shire mayor Bernard Gaffney said the entire council was in a state of shock with Cr Chambers' death.

“Don was a fierce proponent for his Rutherglen community, but he always had an eye for the bigger picture," he said.

Cr Roberta Horne, who also works for the Chambers Rosewood Winery, said Cr Chambers had been her mentor and encouraged her to stand for council.

"It is going to be such a big hole he will leave in our community," she said.

"To pass away at this time is doubly sad really."

His death will require Indigo Shire to conduct a countback of votes from the 2012 election to determine his replacement.