Thousands gather at Vic indigenous rally

Trams were delayed and traffic was brought to a standstill in the heart of Melbourne's CBD as thousands protested plans to close 150 West Australian Aboriginal communities.

Supporters, carrying placards and Aboriginal flags, chanted "no pride in genocide" as they walked from Melbourne Town Hall to Flinders Street station on Friday afternoon.

Meriki Onus of Warriors of the Aboriginal Resistance objected to accusations the rally in the CBD was designed to create traffic chaos, saying peak hour is "as good a time as any".

"We are not a hindrance. It's about educating the public and the media about these communities which have been closed down," she said.

But tram user Vanessa told a different story, describing the rally as disruptive.

"I wish they'd done it elsewhere," she told AAP as the protesters marched past.

Organisers say the Melbourne rally is the biggest yet, following another last month.

A large police presence was visible following warnings they would not tolerate anyone breaking the law.

The protest has been peaceful and no arrests have been made.