Victorian Premier Denis Napthine says the expert advice is it's uncomfortable but not unsafe for the majority of residents in smoke-choked Morwell.
Dr Napthine urged vulnerable people in Morwell South to follow chief health officer Rosemary Lester's advice and move away until smoke from the coal mine fire subsides.
Dr Napthine defended Dr Lester's advice that for the rest of residents, the conditions are uncomfortable but not unsafe.
"Both the chief medical officer and the EPA advise that the conditions and the environment is uncomfortable but certainly not unsafe," he told reporters in Morwell on Friday.
"Dr Lester is an eminent expert in these matters.
"There is no compulsion for people to relocate, it's a decision for those people.
"However, I would urge people to follow the medical advice of Dr Rosemary Lester."
Locals are angry authorities have been slow to act over the smoke from the Hazelwood mine fire that's been burning for nearly three weeks.
Dr Napthine says there are no commercial considerations affecting the government's or authorities' decisions.
"What we're primarily about is the wellbeing of the people of Morwell.
"I can understand why the people of Morwell are frustrated by the ongoing smoke.
"This is a challenging time."
The number of health department officers in the areas has been boosted and financial assistance will be available for eligible families to help their relocation.
Prime Minister Tony Abbott said the federal government would provide assistance if asked.
"We stand ready to receive a request from Victoria for assistance under the natural disaster arrangements and we will activate our part immediately."
Victorian Greens leader Greg Barber wants a judicial inquiry into the fire and the premier to declare a state of emergency for Morwell so resources can be quickly made available.
"I first called for a partial, medically-prioritised evacuation of Morwell on 17 February.
"Since then, people have been breathing ash and coughing up muck."
Opposition health spokesman Gavin Jennings said the government appears to be finally taking the issue seriously but is still sending mixed messages and inadequate advice about what the air quality index means for people's health.
"Within the last hour, the emergency agencies and government have not been able to give clear advice to Morwell residents about the best way in which their health can be protected," he told reporters.
