New Victoria CFA district for Morwell

A new fire district has been created around a Victorian town blanketed in toxic smoke during a mine blaze.

The Country Fire Authority's new District 27 encompasses Morwell, the Latrobe Valley community hardest hit by the Hazelwood coalmine fire which raged for about 45 days in February and March last year.

Emergency Services Minister Jane Garrett says Latrobe Valley is home to some of the state's most important power infrastructure, and the new fire district will better protect it.

The community will also be safer.

"Given some of the challenges that have occurred in the past around emergency management and fires, this will go a long way in terms of making sure the community is better protected," she told reporters on Wednesday.

The district, operational from Wednesday, cost $5.5 million to create and will group 23 fire brigades under one command to enhance training and firefighting capacity in the region.

It's the first new CFA district in 53 years.