Fracking has been banned in Victoria after legislation passed through parliament.
The laws passed state parliament's upper house on Tuesday afternoon and will see all onshore unconventional gas exploration and development, including hydraulic fracturing (commonly known as fracking) and coal seam gas, banned.
It also means a moratorium on exploration has been extended until June 30, 2020.
The state government has called it a "win for farmers".
"Farming communities across Victoria have been calling for a ban on unconventional gas for years - while also expressing serious concern about the potential impacts of onshore conventional gas exploration and development," the government said in a statement.
"That uncertainty comes to an end."
Victoria is the first state to ban fracking, which involves injecting liquid at high pressure into subterranean rocks to open cracks and allow oil and gas to be extracted.
Victorian Chamber of Commerce and Industry says the extension of the moratorium will "prolong the uncertainty around energy pricing and supply issues" for Victorian businesses.
"With rising energy prices, this is the wrong time to restrict potential supply," VCCI chief executive Mark Stone said.
The state opposition supported a ban on fracking, but said if gas was extracted in the future, it should be prioritised for Victorian homes and businesses.
