The incident took place at the corner of Aster and Marigold roads in Wendouree, with the intersection closed off to traffic for several hours.

Ambulance Victoria confirmed it was called to the incident at 2.45pm and transferred the woman to Ballarat Base Hospital.

Police media said the woman had non life-threatening injuries.

But police would not release any further information about the incident on Monday.

One neighbour The Courier spoke to said the driver was known to the victim.

Neighbours said the woman was 27 years old, a resident of Aster Road, and was run over by a motorist after a neighbourhood dispute.

One eye witness, Kyle Heron, said he believed the woman was run over after she entered into a verbal argument with him, trying to protect her friends next door.  

Another neighbour, Brad Lanhan, said he witnessed the woman having a seizure after the accident and put her in the recovery position and opened her jaw before helping her back to her home.

Ballarat Base Hospital confirmed last night the woman was in a stable condition.

 A Ballarat Health Services spokesman said medical staff were considering transferring the woman to a Melbourne hospital overnight.

Police said the exact cause was yet to be determined and were currently interviewing bystanders.