Work on a controversial mosque in Bendigo can finally begin after opponents lost their last legal bid to stop its construction.
The High Court has dismissed an application for special leave to appeal a ruling that upheld Bendigo council's decision to approve the mosque.
Greater Bendigo Council mayor Rod Fyffe says Wednesday's decision means the mosque can now proceed.
"All avenues for appeal have now been exhausted and the mosque can be built," Mr Fyffe said in a statement.
"We are a welcoming and tolerant community but it is important to acknowledge this issue has been challenging for some.
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"It is now time for the community to heal by putting aside its differences."
High Court judges Patrick Keane and Susan Kiefel also ordered the lead applicant, Bendigo woman Julie Hoskin, to pay costs.
Ms Hoskin and her group went to Australia's highest court after Victoria's Court of Appeal in December rejected their bid to challenge a ruling by the Victorian Civil and Administrative Tribunal.
VCAT had upheld the City of Greater Bendigo's decision to grant the planning permit.
It found no evidence the mosque would cause any significant social or other impact on the community.
Before the $3 million mosque was approved in June 2014, Bendigo council received more than 350 objections to the development, which would include two prayer rooms, a shop and a community sports hall.
Following council approval, a group of local residents took the case to VCAT, and beyond.
The Victorian government says the High Court decision is a victory for inclusion.
Equality Minister Martin Foley on Wednesday slapped down "outsiders" who'd opposed the mosque.
"These outsiders from Bendigo need to stop their ill-advised campaign," he told reporters.
"We don't oppose places of worship for any other community so why are we, through these fringe groups, opposing our Muslim community.
"Victoria is big enough and diverse enough to have a place for everyone."
Mr Foley said Victoria was the most successful multicultural society on the planet and embraced Muslims.
