The closure of a regional town's major employer has become an all-too-familiar occurrence in Victoria in recent years.

Nearly 800 Latrobe Valley workers will lose their jobs with the closure of the Hazelwood power station and Heyfield timber mill, but a tiny town in the Goulburn Valley has proved there is hope after major industry leaves town.

After a decade of drought depleted its dairy industry, the town of Girgarre then lost 146 jobs when its main employer, Heinz, shut down its sauce factory in 2012.

Girgarre Development Group (GDG) chair Jan Winter said the town faced a dire future.

"Our attitude was that we had to change, not somebody had to change it for us, but if somebody was going to save it we had to save ourselves," she said.

Farmers market funds town

Doug Gray, another member of GDG, suggested the town start a farmers market which was initially met with ridicule, but the community got on board.

"I think that's the difference with Girgarre to a lot of areas, the people will say 'well, let's give it a go'," he said.

The market helps raise money for the community and the upkeep of local facilities. ( Supplied: Graeme Leak )

The market grew from six stalls to 150 and helped the community raise hundreds of thousands of dollars for the upkeep of its sport facilities, the local Country Fire Authority, the RSL and a community car for medical appointments.

"We don't have to go ask the local shire for money, we actually get our money ourselves and we work for it," Mr Gray said.

Girgarre suffered another blow when the local council closed its kindergarten, threatening the school and town's future.

But the community used funds from the market to keep it open for six months until a new provider could be found.

Girgarre Primary School principal Peter Caldow said the school of 35 students was now growing.

"This year, we've got 10 preps and that's unheard of. I've been here 15 years and that's the best intake we've ever had," he said.

The farmers market in Girgarre grew from six stalls to 150 and helped the community raise hundreds of thousands of dollars. ( Supplied: Graeme Leak )

Music festival for beginners

Music has also played a crucial role in Girgarre's revival.

Girgarre Moosic Muster festival organiser Di Burgman said the town had no musical history so they started a festival for those that could not play, but wanted to learn.

"The Moosic Muster is aimed at the beginners in music, we don't want anyone to miss out on music just because beginners want to learn," she said.

"To start with we had three musicians on a bale of hay with 12 people sitting around enjoying their offerings and they started the workshops the year after, but we've grown now to probably 900 people coming through the workshops.

"We never forget the beginners because this is where we started at Girgarre, not knowing anything."

Chickens for sale at the Girgarre farmers market. ( Supplied: Graeme Leak )

The festival gave a start to so many new musicians and Girgarre now hosts monthly jam sessions that attract people from all over northern Victoria and beyond.

It has grown the town's community well beyond its population of 190.

With the combination of the farmers market and the music festival, locals believe they have created a template for other towns to follow if they are facing extinction.

"We've got a really strong community of doing-people, you give them an idea and they make it happen," Ms Winter said.

"What they've got to do is search for the ideas that can help empower their own communities because nothing's impossible, we've found that one out."