A Federal Government-funded survey of the region last year found there was an urgent need for more post-secondary education and training facilities to promote further education in the region.

The proportion of people in Melton-Moorabool in education or training is just 6.4 per cent, compared with 9.1 per cent across the rest of Victoria and 8.7 per cent nationally.

"Despite rapid population growth in the region, the university recognises that in the short to medium term, the region will be a thin market for post-secondary education and training,'' Professor Battersby said.

"The aim must be to build demand as quickly as possible to a point which offers economies of scale that support campus-based delivery,'' he said.

Professor Battersby said support would be needed from the State and Federal Governments.

"The challenge is to stimulate demand, to engender aspirations for higher educational attainment and to make fast the link in residents' minds between qualifications attained, improved life chances and local prosperity," he said.