Devastated Victorian residents have shown courage in the face of the traumatic bushfires that razed 116 coastal homes, says Victorian Premier Daniel Andrews.
Wye River locals have shown love and compassion for each other as they face returning to the devastated area on Sunday where a third of the homes have been destroyed, Mr Andrews says.
"People were looking out for each other and there was a sense of love and care and compassion," he told Network Seven on Sunday morning.
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The reality of the devastation will hit hard, says Colac Otway Shire Council mayor Frank Buchanan.
A 2200-hectare Jamieson Track fire burnt through 98 homes, while nearby Separation Creek lost another 18 in a fire triggered by a lightening strike on December 19.
"It was a traumatic time. Now reality is settling in," Cr Buchanan told ABC News.
"We had a quick look last night with a few people who lost their homes."
Those affected by the brutal Christmas Day bushfires will be able to soon access up to $1300 in emergency relief under a joint state and federal government scheme.
The town's tourism industry has also taken a hit as roads to the area remain closed and accommodation cancellations pile up.
The premier has urged tourists to continue enjoying their holidays in the area, but to stay aware of conditions at all times.
"The message to tourists, to visitors, is this is a beautiful part of our state. This is pristine coastline," he said.
"If you are aware of your circumstances ... then you can still visit those areas that are open."
Meanwhile, Firefighters will begin the arduous task of cleaning up the damaged areas, which includes removing hazardous trees and reinstating power and phones.
The fire could continue burning until January or February, with the dousing of rain on Saturday unlikely to do much in the long term once the state begins to dry out.
CFA deputy incident controller Mark Gunning says that despite a downgraded warning to a watch and act, people must remain vigilant.
Surf Coast shire councillor Clive Goldsworthy said a charitable foundation was set up in 2013 to help locals in need.
"We see this as part of Lorne community - we dodged the bullet and unfortunately Wye River and Separation Creek didn't," he told ABC 24.
"We're all very close to coastal communities and we're all here to support each other."
Donations to the Spirit Foundation above $100 are tax deductible.
No loss of life
Authorities have confirmed there has been no loss of life.
"The immediate focus is on the people," a CFA spokesman said. "It's [about] getting people back into their communities and understand what sort of losses there are. We're still in the process at the moment of understanding what that is.
"I've got to say themost important aspect about this is that we did - to this point in time we have no loss of life."
Social media users reported the extent of the damage caused by the fire.
Hot conditions forecast for New Year's Eve
New Year's Eve looked set to be very hot, but there was no indication of strong winds.
Emergency warnings remain in place for Wye River and Separation Creek, the areas closed after residents evacuated on Christmas Day.
"Power is out, though fallen domestic solar power lines remain a threat," a Country Fire Authority notice said.
"There are a number of hazardous tress that have been burnt and are dangerous, and damage to septic systems can result in leaking sewerage and health hazards."
Crews were also assessing the full extent of property damage in area.
Local community meetings were held at relief centres in Apollo Bay and Torquay, where affected residents have been offered government grants.
