Between 2001 and 2006, Ballarat acquired an extra 2532 people, mainly from other parts of the state.

And a large proportion were young people with 43.4 per cent aged between 20 and 39.

Bendigo was the only other inland city to experience positive net internal migration of more than 2000 people, according to an Australian Bureau of Statistics report.

Bendigo's growth exceeded Ballarat's with an increase of 2966 people between 2001 and 2006.

The report found overall growth in inland cities was much less significant than elsewhere.

Almost all the growth in Ballarat and Bendigo was due to migration from elsewhere in Victoria.

City of Ballarat CEO Anthony Schinck attributed the city's growth to lifestyle and affordability factors.

"People are making lifestyle choices to move to regional cities like Ballarat, where services like health and education are provided as well as connectivity to Melbourne," he said.

"We can provide these affordable housing options."

Mr Schinck said Ballarat's population was expected to continue growing by about 50,000 to 70,000 people by 2026.

"We are very much looking forward to what we will need, 20 years from now," he said.

University of Ballarat Acting Vice-Chancellor Terry Lloyd said about 10,000 of their students moved to the city to study each year.

Professor Lloyd said many of the students who moved to Ballarat came from regional backgrounds, but there had been an increase in those from metropolitan areas.

"About 20 per cent of our students come from Melbourne," he said.

"For some, it's the courses on offer here that are unique, particularly in information technology, mathematic science and human movement."

Professor Lloyd said there was also evidence that students studying at a regional university were more likely to remain in regional areas.