Victorian Premier Daniel Andrews has announced 217 new cases of coronavirus in the state.
This takes the state's total number of cases to 5353, with 2608 of those currently acrive.
Two more people have died from coronavirus.
The infection figures were well down on yesterday's record high of 428 new cases, the highest daily increase since the pandemic began.
Andrews has told reporters that 28,104 tests were conducted yesterday.
"So our testing rate per hundred thousand is getting quite closed to 20,000 tests per 100,000, which is quite an amazing effort and we are deeply grateful to every single Victorian has come forward over this long journey to get tested," he said.
Meanwhile, a National Party MP in Victoria wants Melbourne and the Mitchell Shire sealed off from the rest of the state as the Covid-19 crisis worsens.
The city went back to stage three restrictions just over a week ago.
Damian Drum said a "genuine hard border" should be imposed around the lockdown zone to stop travel into regional Victoria.
"It is not too late," he said.
"We still have a small number of infections right around Victoria, we can contain those cases.
"But for goodness sake let's put a genuine clampdown around the infected areas of Melbourne and the Mitchell Shire."