Fawcett and co-driver Ellis surged to the lead early in the day-long rally and left 77 competitors in the wake of their Subaru WRX Impreza.

The close mates clocked one hour, 46 minutes, and 31 seconds to finish more than one minute ahead of their nearest rivals.

The crowd-pleasing win was not enough, however, to claw the RaceTech Steel Victorian Rally Championship from Melbourne's Justin Dowel and Matt Lee.

Dowel's Mitsubishi Lancer Evo6.5 was plagued with problems and failed to finish the 180km rally because of mechanical failure.

But he had already claimed the championship before the Begonia Rally - the final round of the 2005 VRC - with 76 points.

Fawcett and Ellis celebrated their victory with fellow members of the Ballarat Light Car Club, which hosted the event.

The win gave Fawcett second place in the championship, eight points behind Dowel.

"It's a dream for a couple of local boys to win in their home town," Fawcett said.

"It hasn't sunk in and I don't think it will for a while.

"We've won quite a few rounds of the VRC before, but this is probably the best. Some great drivers have won this event, so it's a privilege to be in that sort of company."

Fawcett and Ellis had to deal with the unenviable duty of being first out on the track.

They surprised all to post the fastest times in the opening two stages.

"We opened up a 20-second lead in the first two stages and that got the momentum going," Ellis said.

"We planned to consolidate in the mid-section and go harder at night, but our main challenger was out by then and we just had to get through without hitting kangaroos or running off the road."

Spectators crowded viewing points in bushland near Daylesford and Creswick during the day, and did likewise under lights in the Enfield State Forest.

Emergency crews were called into action when the Subaru Impreza WRX of Wayne and Kim Stewart crashed into a tree.

Kim was taken to Ballarat Health Services Base Hospital for precautionary X-rays on his abdomen last night.

A hospital spokesperson said he was cleared of injury and released.

The Stewarts were among 17 other entrants who failed to finish.

Dowel's Mitsubishi had a flat tyre early to set the tone of his day.

Brake problems caused him some headaches before the tailshaft pierced the petrol tank in the middle stages of the rally.

"We had things go against us but we're still happy. We knew we had the championship coming here," Dowel said.