UPDATE TUESDAY, 8AM: Police have released further information about the victim of Monday afternoon's tragic crash in Bunkers Hill.
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It has been revealed the deceased woman was a 24-year-old from Mount Clear.
The Major Collision Investigation Unit has returned from Melbourne to continue investigating the crash site this morning.
The young girl who was airlifted is in a critical, but stable, condition at the Royal Children's Hospital.
Of the patients from the other car taken to Ballarat Base Hospital, there remains one adult and one child in a stable condition.
The intersection remains closed to traffic from all directions.
EARLIER, MONDAY EVENING: A woman has died and a young girl is fighting for life after a horror crash on the western fringes of Ballarat.
Police say two cars collided at Finchs and Greenhalghs roads intersection in Bunkers Hill about 4.50pm on Monday.
A female passenger of one of the cars sadly died at the scene.
A primary school-aged girl, who was also a passenger in the same vehicle, was taken to hospital via helicopter.
Ambulance Victoria said the young girl sustained pelvic injuries and was in a critical condition, while Victoria Police described her injuries as "serious".
Both were trapped in the car after the collision. The male driver of the same car was not seriously injured.
In the other vehicle, the female driver and her passengers were taken to hospital with non-life-threatening injuries.
The exact circumstances of the crash are not yet clear.
Detectives from Major Collision Investigation Unit are headed to the scene.
Police blocked off Finchs Road and Greenhalghs Road to traffic and it was expected to remain closed into the night.
It is the third life lost on our roads in the Ballarat council area this year.
In February, an eight-year-old boy was killed in a "driveway accident" in Delacombe, while a motorcyclist also died after coming off his bike in Miners Rest in the same month.
Anyone who witnessed the incident, has dash cam footage or any other information that could assist police is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential report at www.crimestoppersvic.com.au
