Three Victorians have died of coronavirus overnight as the state recorded 374 new cases, its second-worst day since the pandemic began.
Despite the 374 new cases topping the 363 reported three days ago, Premier Daniel Andrews reassured Victorians it showed the stage three restrictions were working.
However, community transmission remains a real concern in the western and northern suburbs of Melbourne.
"We're not seeing the doubling and doubling again," Mr Andrews said.
"What that says to me ... is that the sorts of measures we have put in place are having a direct impact."
A woman aged over 100, a woman in her 90s and a woman in her 80s all died, taking the state's death toll to 42 and the national tally to 126.
Among the new cases, 62 were connected to known and contained outbreaks, while 312 are under investigation. The state's total coronavirus cases is now 6289.
There are 174 Victorians in hospital with COVID-19, with 36 patients seriously sick in intensive care.
Victoria's Chief Health Officer Brett Sutton said community transmission numbers were on the way down, which was positive.
"We have seen some stabilisation in some postcodes, especially the postcodes where there have been restrictions for a longer period of time," Prof. Sutton said.
The rolling out of mandatory facemask measures were expected to make "a really significant difference" in transmission risk, he said.
Mr Andrews said the new cases were not growing exponentially and "that's not a small achievement".
Health Minister Jenny Mikakos echoed the premier's reassurance on the state's rising coronavirus figures, confirming a dip in cases in some of Melbourne's previously known hotspots.
"I know that all Victorians…are on an emotional roller-coaster as they look at the numbers every day," Ms Mikakos said.
However she warned there were "very high levels" of cases and community transmission in the western and northern suburbs of Melbourne.
Mr Andrews said if the state not imposed stage three restrictions when it did that Victoria would now be facing thousands of new cases each day.
Victoria has conducted 1,361,238 virus tests since January 1.
More to come.
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