The National Hotel publican said he made the decision to close the bar due to the number of people in the establishment.

"It wasn't closed down - I shut the bar myself. The police did not close it," he told the Stawell Times-News.

"There were too many people and they would not evacuate. The only option I had was to shut the bar."

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Under regional Victoria's current restrictions, only 10 patrons are allowed per indoor space at pubs, restaurants and cafes. A venue can only have a maximum of two indoor spaces.

Venues can serve up to 50 people outdoors, provided there is no more than one person per two squared metres.

A group of customers also cannot exceed 10 people.

Owners of the Nash Restaurant, which runs in the bistro section of the venue, said they had been closed for three weeks.

The bar and bottle shop had remained open.

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