Central Victoria's Jim Crow Creek will be officially known as Larni Barramal Yaluk after a name change was gazetted by Geographic Names Victoria.
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The Hepburn and Mount Alexander Shires have been working with North Central Catchment Management Authority and DJAARA "over many years" to replace the racially derogatory name.
Hepburn Shire mayor Brian Hood said he welcomed the change.
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"The term Jim Crow has its origins in racial segregation and anti-black racism and is, therefore, unacceptable," he said.
"Larni Barramal Yaluk, which means home or habitat of the Emu Creek, reconnects the landscape with Dja Dja Wurrung culture and language.
"This change ties in with council's ongoing reconciliation and recognition work. We are very pleased the creek is now formally renamed."
The creek runs 26 kilometres from Breakneck Gorge in Hepburn Regional Park to the Loddon River below the Guildford Plateau at Strangways. About two kilometres of the creek are within Mount Alexander Shire.
The Mount Alexander Shire voted unanimously at its April 2022 meeting to rename the creek.
Mayor Rosie Annear said the new name connects the local government areas to Aboriginal heritage.
"The decision was made following consultation with the community and stakeholders, which include DJAARA and local Indigenous elders," she said.
"In making our decision to change the name, councillors also considered the impact the name has on First Nations people.
"Changing the name is important for many reasons, it recognises and honours the traditional owners of our region, is inclusive, and connects us to our Aboriginal heritage."
Dja Dja Wurrung group chief executive Rodney Carter said the creek was important to First Nations people.
"This creek has an identity and has a spirit," he said. "We are at last affording it the respect it deserves by giving back its name; to now say its name is speaking to country in the most beautiful way.
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Cr Annear said reinstating Dja Dja Wurrung language into the landscape was an action in council's Reconciliation Action Plan.
According to a representative of the Hepburn Shire council, the process to change the creek's name began in late 2021 "with overwhelming support".
A historic reference to the name Jim Crow Creek would be included in the VICNAMES register and would remain a part of the region's history.
The shire was working with road partners to install new signage at the creek.
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