Melbourne suburbs already bursting at the seams with booming populations would be subject to caps on the number of newcomers under a proposal by Victoria's alternative government.
Despite previously pledging to release nearly 300,000 housing lots in growth areas, Liberal leader Matthew Guy on Thursday unveiled a policy to also limit residents in many of those same regions until infrastructure catches up.
It would involve creating a seven-person commission to determine sustainable population levels, a push for greater decentralisation, working with the federal government to direct migrants to regional Victoria, and limiting rapidly-growing new suburbs through council approvals.
"It's about time we focused on growing all of Victoria, not just Melbourne," Mr Guy told reporters.
"We need to grow Victoria differently for the next 30 years than we have in the last 30 years."
Mr Guy said "tough and honest" conversations needed to be had.
Among those conversations would be talks with the federal government on immigration levels and settlement in regional areas.
Federal Population Minister Alan Tudge said Mr Guy's policy was a "nice plan" and is what the Liberals wanted to achieve overall.
"We have a distribution issue," Mr Tudge told 3AW.
"Melbourne is really feeling the pressure at the moment, that's why we not only do we need to build that infrastructure ideally in advance of that population growth."
He said about a two-thirds of the increase in Melbourne's population was due to migration and "we need a much more controlled planning population process".
The Property Council of Australia Victorian executive director, Cressida Wall, cautiously welcomed the announcement as long as it is a blueprint for comprehensive infrastructure investment.
"If the proposed population commission is focused on where we need to be as a state and across local communities, then we are supportive," she said.
"However, if it is simply about turning out the lights, it's a recipe for soaring house prices, a broken property industry and puts thousands of jobs at risk."
The state Labor government has dismissed the policy as a "complete con".
"Just two months ago Matthew Guy promised to send one million extra people into Casey, Cardinia and Wyndham if he is elected and now he says he'll close those communities down," a spokesman said.
