This is despite Ballarat City Council choosing Ballarat Cup Day as its holiday.

Shire chief executive officer Kaylene Conrick said the State Government had introduced new legislation in October last year that saw Melbourne Cup Day become the designated public holiday for all shires in Victoria except those for which other holidays had been nominated.

"The Hepburn Shire Council has not nominated a different day for the holiday and therefore Melbourne Cup Day remains the public holiday for the shire,'' she said.

"Councils that have nominated a local holiday usually do so to support agricultural shows or country cup race meetings held in their area on a weekday.

"This situation does not apply to our shire.''

Ms Conrick said the council's staff observed the Melbourne Cup Day holiday in line with the current legislation.

At Ballarat Council, after a lengthy debate at a meeting earlier this month, councillors rejected both Ballarat Show Day and Melbourne Cup Day.

However a report will be prepared to consider future options for the holiday.

Ballarat Turf Club chief executive officer Shane Brennan said the racing industry contributed $44 million annually to the Ballarat economy.

The loss of the public holiday and likely lower crowds would hurt local businesses, including the fashion industry and accommodation providers, he said.

Meanwhile, Ballarat Agricultural and Pastoral Society acting president Rod White said Show Day was a family-focussed event.

We're a non-alcohol, non-gambling event, which is very rare these days,'' Mr White said.

*What do you think? Should shire residents celebrate Melbourne Cup Day or Ballarat Cup Day? Go to hepburnadvocate.com.au