A council plans to install a memorial plaque in Richmond for the hundreds of people who have died from heroin overdoses in the Victoria Street precinct.

The proposal by Yarra City Council has also angered anti-crime campaigners and some local business owners and residents, who claim rampant drug dealing and crime has ruined their neighbourhood.

The corner of Lennox and Victoria streets in Richmond, which is the proposed site of a memorial for those that have died as a result of drug overdoses in the area. Credit:Chris Hopkins

Victims of Crime Commissioner Greg Davies condemned the plan as "monumentally stupid".

"A monument honouring people doing something illegal and incredibly stupid could serve as a rallying point for others considering doing the same thing," Mr Davies said.