The speed limit along Tatura's Dhurringile Rd has been reduced from 100 km/h to 80 km/h.
Greater Shepparton City Council has extended the 80 km/h speed limit by about 800 m from its current location to north of Pyke Rd.
A 60 km/h speed limit has also been added to a small section of Pyke Rd.
Council says the speed limits have been introduced due to requests from residents.
The council's infrastructure director Phil Hoare said it had been a long wait to get approval from Regional Roads Victoria.
“Council will continue to monitor the effectiveness of these changes and implement further measures where appropriate,” he said.
“I would like to thank the community for their input and support. We trust these changes to the speed zones will improve safety at this location and drivers will assist by ensuring they adjust to the new regime.
``Our priority is to provide a safe road network for all road users.”