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Colac is a small city in the Western District of Victoria, Australia, approximately 150 kilometres south-west of Melbourne on the southern shore of Lake Colac and the surrounding volcanic plains, approximately 40 km inland from Bass Strait. Colac is the largest city in and administrative centre of the Colac Otway Shire. At the 2006 census, Colac had a population of 10,857.


A commercial centre for a major agricultural district, it was named after nearby Lake Colac and was proclaimed a city in 1960.


For thousands of years clans of the Gulidjan people occupied the region of Colac, living a semi-nomadic life.


The area was first settled by Europeans in 1837 by Hugh Murray, and proclaimed a town, Lake Colac, in 1848.