UPDATE, Tuesday 7.30am:
Those who tragically lost their lives on Sunday evening have been identified as belonging to two Melbourne families.
They were family friends who had visited Daylesford as tourists.
The Bhatia family from Tarneit has lost father Vivek, aged 38, and their 11-year-old son.
Ruchi Bhatia, the 36-year-old wife of Vivek, remains in hospital, as does her six-year-old son.
Point Cook lawyer and volunteer, 44-year-old Pratibha Sharma, her 30-year-old husband Jatin Chugh and her 9-year-old daughter Anvi were also killed after the horror pub crash.
A 43-year-old Kyneton woman, a 38-year-old Cockatoo man and an 11-month-old baby are also understood to be in a stable condition in various hospitals.
The baby's mother was not injured when a car crashed into diners outside the Royal Daylesford Hotel.
The 66-year-old Mount Macedon driver was taken to hospital with non-life-threatening injuries including shock and is expected to be interviewed by police today.
Ms Sharma ran in the 2018 Victorian election as an independent in Werribee and was also a dedicated volunteer.
Australian Sikh Support said they were "shocked" to hear that their volunteer - who had helped to feed families during the pandemic - had passed away alongside her own family.
It is understood the Bhatia family are also members of the Sikh community.
UPDATE, Monday 3.50pm: People have laid flowers at the site of Sunday night's crash, paying their respects to the five people who lost their lives.
The Daylesford community was reeling after the incident, with many locals and bystanders struggling to fathom the horror of what had occurred.
Some of them were first responders at the scene and the community has banded together to get through the coming days.
By Monday afternoon, the scene had been cleared, police tape removed and the intersection reopened to traffic.
Police Chief Commissioner Shane Patton said the Major Collision Unit had attended and done everything expected.
"A reconstruction of the scene to establish the movement of the vehicle, speeds and those types of things," he said.
"It is still very early days in this investigation."
UPDATE, Monday 12.40pm: Police expect to interview the 66-year-old man in the SUV that ploughed into a Daylesford beer garden on Monday afternoon.
Detectives from the Major Collision Investigation Unit expect to speak to him him later on November 6.
Chief Commissioner Patton said the man had been treated for shock and minor injuries in hospital.
Police found no alcohol in the man's system during a breath-test following the crash. They were yet to rule out any other potential factors in the crash.
More details are emerging about the people struck by the car but police were holding back key details.
Police were yet to track down all family members who needed to be notified and difficulties identifying everyone given the "horrendous scenes" at the crash site, Chief Commissioner Patton said.
"What I can say in essence is that there were two different family groups that were known to each other, who were significantly involved and impacted by this," he said.
An 11-month-old boy was taken to Ballarat Base Hospital in a stable condition.
He is among a list of people in hospital that includes:
- A boy possibly aged six, flown to the Royal Children's Hospital with broken legs and internal injuries. His condition has improved from critical to stable.
- A 35-year-old woman flown to the Royal Melbourne Hospital, believed to be in the ICU in a serious condition
- A 43-year-old woman flown to the Royal Melbourne hospital and now believed to be stable
- A 38-year-old man flown to the Royal Melbourne Hospital now believed to be in a stable condition
- The 11-month-old boy taken by road ambulance to Ballarat Base Hospital believed to be stable.
- The 66-year-old man who drove the vehicle. He has been treated for shock and minor injuries
Police have rejected accounts of a delayed response to the crash, saying two members of the Daylesford police station arrived on foot almost immediately.
EARLIER: Five people have died after a car slammed into a beer garden outside Daylesford's Royal Hotel on Sunday, November 5.
Two men, a woman and a six-year-old boy died at the scene, while a teenage girl died later in hospital.
Six people remained in hospital on Sunday night, including the 66-year-old driver of the car, and a three-year-old boy, who is in a serious condition in Melbourne's Royal Children's Hospital.
Major Collision Investigation Unit detectives are investigating the crash, that occurred just after 6pm.
A BMW SUV travelling southwest along Albert Street, Daylesford, mounted the kerb and struck a number of patrons dining on the lawn area of the Royal Hotel, on the corner of Albert and Vincent streets.
The scene was described as "horrific", with bystanders rendering medical treatment until emergency crews arrived.
Bodies were quickly covered in white sheets and debris was scattered all over the road. A single shoe could be seen lying nearby, while a light pole was also knocked over.
Roads were blocked off and ambulances took patients by road to the local sporting oval, where four were airlifted.
Ambulance Victoria said others were taken by road to hospitals in Ballarat and Melbourne.
Addressing the media at 11pm on Sunday evening, Victoria Police Superintendent John Fitzpatrick from Road Policing Command said police were yet to identify the victims.
"[The vehicle] has driven through an area where there were were patrons eating dinner and enjoying themselves. As a result, we have people deceased at the scene,'' he said.
''One of those victims behind me is a child and there are other patients in hospitals in Melbourne.
"The driver of the BMW is currently also in hospital and we're waiting to speak to him."
The driver was a 66-year-old man from Mount Macedon, in central Victoria.
Supt Fitzpatrick said it was a really complex scene and police were trying to work through what had occurred and were trying to identify the victims.
"We don't know whether they're locals or tourists. It's obviously a popular tourist destination," he said.
"We'll canvas a whole range of places around that scene to try and get some CCTV footage."
Ambulance Victoria regional director Trevor Weston said initial crews arriving at the hotel found "chaotic" and "confronting" scenes.
Mr Weston said his thoughts are with Daylesford paramedics who first responded to the emergency.
"You never want to respond to any incident like this but certainly not in your hometown," he said.
"Any incident involving children is that next level of distress for our paramedics."
Witnesses describe the horror
A number of locals rushed to the scene, where there were multiple casualties, to render medical treatment before emergency services arrived.
Bystanders reported hearing the vehicle making strange noises and jolting right before it crashed into the beer garden, which is a popular venue for locals and tourists, especially on a long weekend.
Multiple ambulances were dispatched to the scene, along with fire rescue crews and police, while four air ambulances were dispatched to the nearby oval.
Witness Rhonda White, 67, told media that immediately after the crash, people came from everywhere to help the injured.
"All I remember is people just doing CPR ... there were so many people that ran to the rescue," she said.
"It was about 15 minutes before the police arrived and half an hour before the ambulance ... so in that time, it was just bedlam."
"[It was] horrible, horrible and I can't believe what I saw. We were pitching in and helping people; I don't know where they came from."
Melbourne tourists in shock
A Melbourne couple who arrived in the area a couple of minutes after the accident, spoke to ACM reporter Gabrielle Hodson.
The pair had driven past the hotel earlier in the day and described the area as packed with people.
"We arrived probably five minutes after the accident and white sheets were up, so we knew it was very serious," the couple said.
"We're visiting and are just in total shock. We can't believe the whole town has to go through this and what we've seen, it's absolutely horrific.
"We just feel so distraught for the family and friends, it's an absolute tragedy."
Anyone who witness the incident, has a dashcam/CCTV footage or information is urged to contact Crime Stoppers on 1800 333 000 or report online at crimestoppersvic.com.au.