The formation of the Great Divide about 3 million years ago created a barrier to the moisture-laden winds that sweep across Victoria from the Southern Ocean. Rainfall is greatest on the southern slopes of the Divide and other mountainous regions, leaving the northern slopes, foothills, coasts and plains relatively dry. In this drier country, a variety of eucalypts, cypress-pines and casuarinas form open forests and woodlands, with grassy, heathy, sedge-rich or herb-rich understoreys. Stringybark forests dominate the near-coastal landscape east of Western Port; red gum forests survive along major rivers in the north of the State; grassy woodlands are scattered throughout the Western District; and the remnants of the once great box–ironbark forests lie in a wide arc from west of Stawell to east of Wangaratta.

Much of Victoria’s dry forests and woodlands are significantly diminished compared to pre-European times. The more fertile areas were cleared for agriculture in the 19th and early 20th centuries, and large tracts were laid bare during the 19th century gold rushes, when timber was in huge demand for mines, railways and townships. Many of the grassy coastal forests were also cleared for agriculture, and more recently for urban and recreation development. The remnants of these once-extensive forests and woodlands form a mosaic of natural vegetation in a vastly altered landscape, following patterns of soils, geology and landform.

Dry forest and woodlands are no less rich or biologically significant than their wetter relatives. The box–ironbark forests, for example, support a wide variety of plants and animals, including some of the State’s rarest orchids, as well as significant mammals such as the Brush-tailed Phascogale and a range of reptiles. Old and dead trees are essential habitat for a large suite of fauna in dry forests and woodlands, because they provide prolific hollows and nectar, thick bark and fallen limbs. Many birds depend on nectar for food, travelling large distances to feed in trees and shrubs at peak flowering times. For example, the Swift Parrot migrates from Tasmania in winter just to feed on flowering eucalypts in this ecosystem.

Many species, such as the Grey-crowned Babbler, Brush-tailed Phascogale and Bearded Dragon, prefer to forage for invertebrates in rotten wood or under thick bark on large dead or living trees. Others find food and shelter among branches and leaf litter. Mistletoes, lerps, honeydew and plant exudates also provide a significant source of food for animals. Ephemeral streams and soaks support frogs, invertebrates and birds.

Agricultural clearing, mining, timber harvesting, firewood collection and gravel extraction have resulted in significant habitat modification. Current management challenges include habitat fragmentation and modification, vegetation clearance, the loss of hollow-bearing trees, weed invasion, feral predators, introduced pathogens, and improving fire management.