On Wednesday, Victorian Premier Daniel Andrews announced lockdown would end for regional areas, apart from Shepparton, from 11.59pm on Thursday.

Mr Andrews said should cases appear in a region the government would apply a targeted series of measures, rather than a lockdown across rural Victoria.

Asked why localised lockdowns were not introduced earlier in the pandemic, Mr Andrews said the state was no longer chasing zero cases which allowed 'a bit more room to move'. Shepparton is expected to be released from lockdown next week.

Business Wodonga chief executive Graham Jenkin is optimistic the changed approach and growing rate of vaccination will mean the end of lockdowns for the North East.

"I'm very excited that we can try get back to normal again and hopefully this is the last [lockdown]," he said.

"I've been saying for 12 months lockdowns should be localised. If there was a case in Wodonga why would places like Horsham or Gippsland be locked down? It's too far for there to be a real risk of spread."

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However, Mr Jenkin is concerned it won't be viable for hospitality venues to reopen under the new strict density requirements, which allow ten seated patrons indoors and 20 outdoors.

Member for Benambra Bill Tilley said it was a 'Claytons easing of restrictions'.

"A lot of the easing or concessions to regional Victoria are simply shifting the cost and responsibility to small businesses knowing full well that complying will almost certainly mean they lose money if they open," he said.

"Would you stock the fridge and employ a full complement of staff if you were a restaurant, pub, cafe or club that can only have ten people inside and 20 outside?"

Wodonga mayor Kev Poulton said the region had been crying out for a localised approach to lockdowns.

"For us to go through seven lockdowns without any real concerns in our area in that period... we'll definitely appreciate a targeted approach," he said.

Wodonga Retailers president Greg Haysom said the decision to avoid blanket lockdowns would give businesses confidence and an incentive to do the right thing.

"Now businesses will see if they do right thing we can stay open whereas at the moment it didn't matter what we did if Melbourne got locked down, we'd all get locked down," Mr Haysom said.

Mr Haysom said while the region still has border issues to grapple with it was great that hairdressers, retailers and hospitality venues could reopen.

Cr Poulton said the case of a Wodonga-based truck driver who tested positive to COVID was handled well with no exposure sites locally and was looking 'so far, so good.'

The mayor said he was proud of how Wodonga had responded to the call to get vaccinated.

"[Vaccination] is going to be critical as well in the next six, seven, eight weeks when no doubt we'll start to see vaccinated people treated differently," he said.

Regional school students from Prep to Grade two and in Year 12 will return to face-to-face leaning next week, but remote learning remains in place for other year levels.

Funerals are allowed 20 people, and weddings ten.

Masks must still be worn inside and outside. Victorians can travel anywhere in regional Victoria, but travel to Melbourne is restricted.

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