Celebrations kicked off early at Yarra Park, Edinburgh Gardens and Footscray Park, which hosted family-friendly events in sublime weather conditions.

Under sunny skies, families poured into Yarra Park early with picnic baskets, fold-up chairs, Eskies and blankets in tow to secure the prime position to watch the city's fireworks display.

Among them was Noble Park woman Ola Sarawan, who said the new year marks her first as an Australian citizen.

"It's been such a big year for us with all the ups and downs," Ms Sarawan said."The good news is that I am an Australian citizen now. I feel more complete, I belong here now."

Ms Sarawan, who came from Lebanon six years ago with husband Fadi and son Adam, said there will be more new beginnings for the family in 2018 with another baby on the way.

???"It was a stressful year," Mr Sarawan laughed. "As you can see, my wife is pregnant, it's been a long year."

"But it's gone quick, it was the start of the year, and now we are already here."

Thousands more soaked up the atmosphere at Edinburgh Gardens, which included an outdoor cinema and the annual Yarra Dog Show where pooches put their best paw forward in a bid to be crowned "Best Inner City Hipster".

Across the city, children stayed up past their bedtimes, drinks were swilled and lips kissed at the stroke of midnight as a spectacular fireworks display lit up the sky.

The celebrations included 68 pyrotechnicians lighting 14 tonnes of fireworks from 22 rooftops, a show which cost to the tune of $2.8 million.

The fireworks - an exploding bouquet of flowers from peonies to dahlias and chrysanthemums - ignited from 22 city rooftops in a 10-minute spectacular.

The show was synchronised to music by pop duo Client Liaison.

The display of 14 tonnes of explosives - Melbourne's biggest yet, even surpassing Sydney's famed fireworks - was expected to draw up to half a million people to the CBD.

In the heart of the city, at Federation Square, crowds rang in the new year with a free Multicultural Arts Victoria concert.

The last night of the year is typically also one of the most violent and busiest for emergency services.

For police, a huge operation was underway to keep revellers safe.

Major CBD thoroughfares were shut down as a record numbers of police patrolled the city.

St Kilda Road, Spring Street, Flinders Street, Harbour Esplanade and Brunton Avenue were all closed from 6pm on New Year's Eve until at least 1am.

New Year's Eve revellers were advised to stay out of the CBD and instead watch Melbourne's firework show from afar for the best view.

But crowds still came in droves and watched the spectacular display from Kings Domain, Treasury Gardens and Flagstaff Gardens while others poured into the Docklands.

New Year's Eve Alcohol bans also didn't deter revellers celebrating at popular beaches in Melbourne's southeast.

The City of Port Phillip announced that St Kilda foreshore would be alcohol-free for at least another month, following a huge Christmas Day party which cost $20,000 to clean up, after 29 tonnes of rubbish were left on the beach by more than 5000 revellers.

With no rain or cloud cover in Melbourne, the crowds still flooded the foreshore of St Kilda beach to watch the skies over the bay be transformed into a sea of colour and light as a new year began.