When the first Europeans arrived in western Victoria, the undulating plains supported grasslands. Other extensive grasslands occurred on the plains between the Murray Valley and the Great Divide (the Northern Plains) and in Gippsland. Where soils were deeper and more friable, or where burning had not been so frequent or severe, open grasslands gave way to grassy woodlands of River Red Gums, Yellow Gums, she-okes, bulokes and acacias. Aborigines used fire to maintain the open nature of the grasslands, and to stimulate the growth of useful plants and attract animals for hunting.

The grasslands lie over generally heavy clays which become waterlogged in winter but dry and crack in summer. In Gippsland and the Northern Plains they also lie over alluvial deposits. They are floristically rich, not only in grasses such as Kangaroo Grass (which is dominant south of the Divide) or wallaby-grasses and spear-grasses (abundant north of the Divide) but also in the colourful orchid, daisy, pea and lily families. In winter many grasslands form ephemeral flooded native meadows, silently waiting spring, when they burst into colour and ring with the voices of frogs and birds. A suite of rare animals, including the Bush Stone-curlew, Eastern Barred Bandicoot and Striped Legless Lizard, are adapted to life in these changeable environments.

Many grassland plants are adapted to frequent, low-intensity fire and grazing by native animals, and to wet winters and dry summers.

The rapid drying of the soil may help to explain the flush of spring and early summer flowering. The ability to withstand dry summers makes native grasslands and grassy woodlands on private land potentially beneficial in whole-farm management, as they are likely offer a more reliable source of feed during dry years than can introduced pasture species. Many native grasses may be suitable for seed production and pasture reinforcement. The biodiversity of native grasslands is therefore likely to be an important asset for agriculture in the future.

European settlers found that the expansive grasslands provided good grazing and were easy to convert to cropping and improved pasture. And because these grasslands carried almost no timber and had little or no value for gravel or water supplies, few areas were reserved. Today less than 1% of these magnificent grasslands remain, in small patchy remnants, and many are so small that their long-term viability is doubtful. Some of the larger remnants are on private land, especially where ploughing, fertilising, and sowing of exotic pasture plants have not occurred.

The major challenges in managing grassland remnants include weed invasion, subdivision and clearance, increased nutrient levels, lack of fire, accidental damage from vehicles, and sheep and cattle droving. Larger remnants, which are particularly important for animal populations, are at risk from subdivision and clearing, and from changes in agricultural practices, particularly pasture improvement.