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Victoria is a step closer to hosting the 2026 Commonwealth Games after the state government entered exclusive negotiations with the games' governing body.

Victorian Premier Daniel Andrews on Wednesday confirmed the state's bid to be host, saying the games would drive investment in Victoria's infrastructure and tourism sectors.

"This exclusivity speaks to the fact that we're the sporting capital of our nation," Mr Andrews said.

"We have all that is needed to make an event like this a fantastic success for us and everybody right across the Commonwealth."

Mr Andrews noted that if Victoria's bid was successful, the 2026 games would shift away from Melbourne and instead be set in the regions.

"It's something new, it's something unique, it's something very special," he said. "Regional Victoria will be better off for this."

Regional Cities Victoria chair Kim O'Keeffe agreed, saying the regions were primed to host major events.

"The Melbourne Commonwealth Games in 2006 was a great success," she said.

"A Victorian Commonwealth Games in 2026 that is hosted across the state would truly be an event to remember."

Ballarat Mayor Daniel Moloney said years of investing in the region's sporting facilities placed the city in a good position to host the games.

Greater Bendigo Mayor Andrea Metcalf said her city also had the infrastructure to host sports like tennis, basketball, and volleyball.

Cr Metcalf said that sharing the hosting duties would allow all of regional Victoria to benefit economically.

But while regional councils have welcomed the announcement, advocacy group Save Victorian Events said the 2026 games would do little to help the state's struggling events sector.

"While the promise of work for some in four years' time is welcome, there finally needs to be some focus on helping our industry get through the year ahead and to rebuild," the group said in a statement.

Tasmanian Premier Peter Gutwein was also disappointed after finding out about Victoria's exclusive bid through the media.

Mr Gutwein last week wrote to Commonwealth Games Australia requesting his state be considered as host.

Tasmania recently hosted the fifth men's Ashes cricket Test and was given two elimination AFL finals last season due to mainland COVID-19 restrictions.

"I was a little disappointed in the way Commonwealth Games Australia dealt with this," Mr Gutwein said.

"The first I heard that they were exclusively dealing with Victoria was through the media."

But Mr Gutwein said Tasmania's bid was still on the table.

"I've been very strongly of the view that we could co-host a number of sports," he said.

"I make no apologies for being aspirational.

"We are as good as anywhere in this country and anywhere on this planet."

Asked about the Tasmanian bid, Mr Andrews said he would not comment on other states.

"I'm here talking about our state and our plans and our vision to bring perhaps the biggest event ever to regional Victoria," he said.

Victorian Opposition Leader Matthew Guy supported the hosting bid but said the Andrews government needed to ensure it was not "flippant" with Victorians' money.

"These things come at taxpayers' cost and we need to manage these things responsibly," Mr Guy said.

The Commonwealth Games Federation will assess Victoria's submission before naming the host for the 2026 games.

The games last came to Victoria in 2006, when Melbourne played host.

© AAP 2022

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A mandate requiring three COVID-19 jabs to participate in Victoria's vaccinated economy may be too difficult to implement, Premier Daniel Andrews has conceded.

The state reported 8149 new COVID-19 cases and 18 deaths on Wednesday, with the easing Omicron wave prompting a plan to lift elective surgery limits by the end of the month.

Mr Andrews had previously indicated that once the definition of fully vaccinated was changed to requiring three vaccine doses, this would be extended to Victoria's vaccinated economy.

At the moment, Victorians must have received two doses to attend venues, including events, pubs and restaurants.

However, the premier seemed to walk back this stance on Thursday.

"There comes a point where things become kind of impractical and you've got so many different systems operating at once that it doesn't really work," he told reporters.

"For instance saying to someone, 'you can't go to the pub unless you've got three jabs' but the person sitting at the table next to you... from another country has only got two, it kind of gets a bit hard to justify."

Meanwhile, Melbourne's public hospitals will be able to perform category two surgery from Monday and private metro hospitals can ramp up to 75 per cent capacity for any type of elective surgery, up from 50 per cent.

The elective surgery shackles could be thrown off completely a week later on February 28, at the discretion of Health Minister Martin Foley.

Each hospital will also assess their own capacity based on staff availability and COVID-19 demands, with 44 still treating infected patients.

In regional Victoria, the private hospitals cap will rise from 75 per cent to 100 per cent from Monday and public hospitals will continue to carry out any elective surgery based on their individual capacity.

Victoria suspended all less urgent category two and three surgery in early January as the Omicron variant ran rampant through the community, ratcheting up pressure on the health system.

But the state's rolling seven-day COVID hospitalisation average now sits at 457 patients, down from a peak of more than 1200 patients in mid-January.

Staff unavailability figures have also fallen by roughly two-thirds to 1400 workers.

Before the month-long suspension of category two and three procedures, Victoria's elective surgery waiting list had ballooned from 67,177 to 80,826 in the final three months of 2021.

Mr Andrews said he spoke with NSW Premier Dominic Perrottet on Tuesday about ways to reduce the backlog, including a possible elective surgery blitz.

"Where we can work together we will," he said.

"There'll be a time for us to make those announcements. The most important thing is to get those services back on and that's why this morning's announcements are so welcome."

Mr Andrews also flagged he would make some "very important announcements about rules" and "normalising this virus" later this week.

QR code check-ins and venue density limits are currently under review.

With international borders reopening, he cautioned that Victorians will be dealing with influenza outbreaks as well as the virus come winter.

"We are going to finish up with COVID and the flu, and we haven't had that before," he said.

VICTORIA'S LATEST COVID-19 FIGURES:

* Hospital cases: 397, down 44

* Intensive care cases: 68, up one

* Ventilated cases: 13, down one

* PCR tests processed on Tuesday: 23,278

* Positive PCR tests: 2854

* Positive rapid tests: 5295

* Active cases: 49,936, down 1031

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All elective surgery is set to resume in Victoria by the end of the month, as residents wait to learn if restrictions will be relaxed further.

Victoria reported 8149 new COVID-19 cases and 18 deaths on Wednesday, with the state's easing Omicron wave prompting a plan to lift elective surgery limits.

From Monday, public hospitals in metropolitan Melbourne will be able to perform category two surgery and private metro hospitals will ramp up to 75 per cent capacity for any type of elective surgery, up from 50 per cent.

The elective surgery shackles could be thrown off completely a week later on February 28, at the discretion of Health Minister Martin Foley.

Each hospital will also assess their own capacity based on staff availability and COVID-19 demands, with 44 still treating infected patients.

In regional Victoria, the private hospitals cap will rise from 75 per cent to 100 per cent from Monday and public hospitals will continue to carry out any elective surgery based on their individual capacity.

Victoria suspended all less urgent category two and three surgery in early January as the Omicron variant ran rampant through the community, ratcheting up pressure on the health system

But the state's rolling seven-day average of COVID-19 hospitalisations now sits at 457 patients, dropping from a peak of more than 1200 patients in mid-January. Staff unavailability figures have also fallen by roughly two-thirds to 1400 workers.

Before the month-long suspension of category two and three procedures, Victoria's elective surgery waiting list had ballooned from 67,177 to 80,826 in the final three months of 2021.

Premier Daniel Andrews said he spoke with NSW Premier Dominic Perrottet on Tuesday about ways to reduce the backlog, including a possible elective surgery blitz.

"Where we can work together we will," he told reporters on Wednesday.

"There'll be a time for us to make those announcements. The most important thing is to get those services back on and that's why this morning's announcements are so welcome."

Mr Andrews also flagged he would make some "very important announcements about rules" and "normalising this virus" later this week.

QR code check-ins and venue density limits are currently under review.

With international borders reopening, Mr Andrews cautioned that Victorians will be dealing with influenza outbreaks as well as the virus come winter.

"We are going to finish up with COVID and the flu, and we haven't had that before," he said.

Meanwhile, Victoria Police has confirmed a sixth person has been served a $100 fine for not wearing a mask during an indoor Liberals/Nationals partyroom event at parliament last week.

It is unclear whether the additional fine was handed to Essendon great Kevin Sheedy, who spoke at the event, after five were earlier issued to Opposition Leader Matthew Guy and his colleagues.

VICTORIA'S LATEST COVID-19 FIGURES:

* Hospital cases: 397, down 44

* Intensive care cases: 68, up one

* Ventilated cases: 13, down one

* PCR tests processed on Tuesday: 23,278

* Positive PCR tests: 2854

* Positive rapid tests: 5295

* Active cases: 49,936, down 1031

© AAP 2022

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The development of a sustainable water supply for South Australia's north will be examined in a "once-in-a-lifetime" opportunity to support economic growth across the region.

The state and federal governments will spend $15 million to develop a business case for the Northern Water Supply project, which could include a desalination plant in Spencer Gulf to reduce reliance on the Great Artesian Basin and the River Murray.

Deputy Prime Minister Barnaby Joyce said delivering a secure and sustainable water source would drive the growth of regional communities and industries.

"A safe, reliable and sustainable water source will improve water security, create jobs and help unlock the economic potential of new and expanded opportunities for businesses in the state's north," Mr Joyce said.

To support the business case, the SA Government has entered into an agreement with SA Water, BHP and Oz Minerals to address the region's water needs.

South Australian Premier Steven Marshall said it was important for the government to play a coordinating role to bring together a range of potential customers.

"This project is a once-in-a-lifetime opportunity to secure a brighter future for South Australia and create jobs in an environmentally sustainable way," Mr Marshall said.

"We are always looking for ways to ensure we are using water efficiently because ongoing and secure access to water is integral to economic growth."

BHP Asset President Jennifer Purdie said BHP said the project had the potential to support industry and agriculture in rural and regional South Australia by improving water stewardship and creating opportunities for future investment and jobs.

"This is a positive step forward in BHP's commitment to make our Olympic Dam operations more sustainable," she said.

Conservation SA said environmental and Aboriginal groups had for years been concerned and critical of BHP's "unsustainable" use of water from the Great Artesian Basin.

It also called for any proposal for a desalination plant in Spencer Gulf to be robustly assessed and not rapidly embraced without substantial investigation.

"Scientists and marine experts have previously raised concerns about the level of ocean flushing in the gulf and the flow-on impact that would occur to marine life," Chief Executive Craig Wilkins said.

OZ Minerals Chief Executive Andrew Cole said the company was keen to play a part in collectively exploring a sustainable way forward.

"Water is an essential consumable for our operations and a critical resource for our stakeholders, particularly for the communities in which we operate, so we recognise the need to responsibly consume this water," he said.

"One of our aspirations as a modern mining company is to strive to minimise water use and add value when we do."

SA Water Chief Executive David Ryan in the face of a changing climate it was critical to be thinking ahead to ensure fit for purpose water was secured for the long term.

© AAP 2022