Traditional land owners sat alongside Victoria's political leaders as Australia's first Aboriginal treaty laws were introduced to state parliament.
The first bill of its kind in Australia, Victoria is following in the footsteps of New Zealand and Canada in seeking a treaty between the government and first people.
"We all know that at the Commonwealth level, the Statement of the Heart - the Uluru Statement - that was rejected," Treaty Advancement Commissioner Jill Gallagher told reporters outside parliament on Wednesday.
"We can be leaders in this not only in this country but in the world."
Treaty working group chair Mick Harding and Ms Gallagher spoke about the bill in the lower house on Wednesday.
Mr Harding praised the proposal as "beautiful" and performed a traditional song to resounding applause, while Ms Gallagher said it was a step to "right the wrongs".
"Let there be no mistake, there were crimes against humanity committed on our people in this country," she said.
Aboriginal Affairs Minister Natalie Hutchins said the government was "really walking the walk" towards achieving self determination for Aboriginal Victorians.
The bill will establish a representative body made up of 30 traditional owners by mid-2019, who will design a negotiations framework and create a fund to support groups who seek treaties with the state.
But the Greens, along with some Aboriginal Victorians are unhappy with the government's approach.
Northcote MP Lidia Thorpe said the body slated to negotiate treaty is not inclusive enough and government must speak to clan representatives.
Elders Alma Thorpe, Lidia's grandmother, and Beryl Booth at times were visibly upset in the gallery as the bill was discussed.
Opposition Leader Matthew Guy told reporters on Wednesday morning the coalition in the past has opposed a treaty.
Debate on the bill continues.
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