A blind woman has been refused entry on a Melbourne bus with her guide dog after the driver claimed no dogs were allowed.

The altercation sparked an hour-long stand-off between the vision impaired passenger and the driver in Rosanna this morning, when he refused to let her aboard the bus.

Louise Pearson has travelled on the same 501 bus from Finlayson Street every morning for four years and never experienced any issues.

© Nine The bus driver refused to let Louise Pearson on board due to her guide dog.

"The bus driver said 'no dogs on this bus'," she said.

"I just stepped onboard and said 'yes indeed this is a guide dog' and went and took my usual seat.

"I was a bit startled."

Guide dogs are permitted to travel on all forms of public transport under Victorian law.

© Nine Louise Pearson says she was disappointed about the bus driver's stance.

Another passenger told the driver the woman and her guide dog were regular travellers on the route, but he would not give in.

9News understands English may have been the bus driver's second language, prompting a communication barrier.

The bus driver called Greensborough police, who offered to drive the woman to work, but she refused.

© Nine The blind woman with her guide dog Arthur.

He eventually allowed the pair to board the bus after an hour-long debate.

Ms Pearson said it was ridiculous her guide dog's presence was even questioned.

But she admitted it was not uncommon for vision impaired people to face transport challenges, with Ubers and taxis often driving away once they see a dog.

"I was a bit disappointed, but also resolute," she said.

"The bus company needs to ensure their staff are trained and willing to accept these are the rules."