Crowds have filled Ballarat's main street to welcome home the Melbourne Cup's newest champions, Michelle Payne and the Prince of Penzance.

The dark and drizzling day in Ballarat did not stop fans from gathering on Sturt Street to cheer on the championship duo.

They were joined by trainer Darren Weir and Payne's brother, Stevie, who received tumultuous applause when he held the cup aloft.

Michelle Payne made history on Tuesday when she thundered past the posts and became the first woman ever to win the Melbourne Cup.

It was a special moment for Payne, who called out the male-dominated sport immediately following her victory.

Strapper Stevie Payne shows off his trophy to fans. ( AAP: Julian Smith )

The 30-year-old was emotional as she took to the stage.

"It's just so overwhelming to see you all here and I can't be thankful enough about what's happened to me in the last week," she said.

"I'm a bit loss for words. It's an incredible day to be here and I'm so proud to be a Ballarat girl."

At the front of the stage were girls from Payne's old high school, Loreto College, in Ballarat.

"Unfortunately I left when I finished year nine," she said.

"I said to my dad when I was leaving that I wanted to stay at school and try and do both and unfortunately he said you had to choose one or the other because it was too hard to do both.

"That just goes to show how much I love that school."

Winning trainer Darren Weir mixes with the crowd during the parade. ( AAP: Julian Smith )

Weir revealed he knew the Prince of Penzance could make history when Payne's brother, Stevie, drew barrier one.

"You need so many things to go right in horse racing and I would say especially in this race," he said.

"We got the good draw, we had a super-fit horse on the day."

He said their strategy on Tuesday was for the Prince of Penzance to follow Max Dynamite and Criterion.

"I said to Michelle, just follow them for as far as you can, they'll cart you to the top of the strait," he said.

"So she listened to me for about 2,400 metres of the race and then I'm glad she took it into her own hands.

"There are some of the world's best riders there and she outrode them. It's a credit to her."

Payne has already admitted retirement might not be too far away, but said for now, she was just focusing on the next race.

"I'm nearly looking forward to the Ballarat Cup as much as the Melbourne Cup," she said.

"Because if anything was going to be as special as that, it would be winning your hometown cup.

"I absolutely can't wait to get out there."