They are urging visitors to return to their region, a popular tourist area in Victoria's high country, which has been decimated by a sharp drop in business.
Travel restrictions have been reduced in Porepunkah and surrounding towns as the search for accused cop killer Dezi Freeman inches closer to its fourth week.
Freeman, 56, is accused of fatally shooting policemen Neal Thompson and Vadim de Waart-Hottart at a property in Porepunkah, about 300km northeast of Melbourne, on August 26 before escaping into bushland.
Businesses that lost money during the search became eligible for $5000 grants on Monday - a day after police lifted travel warnings in the area ahead of school holidays and the AFL grand final long weekend.
The $2.5 million state government assistance package includes money for the local council, chamber of commerce and a marketing campaign to entice visitors back.
The community would receive every support they needed, Victorian Treasurer Jaclyn Symes said.
Mount Buffalo National Park remains closed.
Cherry Walk Cafe owner Leanne Boyd described nearby Bright as a "ghost town" for the past three weeks, with the "unprecedented situation" leaving many businesses without any income.
Ms Boyd said the empty streets were eerily similar to 2019-20, when the Black Summer bushfires brought the Alpine tourist mecca to a standstill.
"We've got no tourists because everyone has been told to stay away," she told AAP on Monday.
"But we've got people to pay, electricity bills, rent and the ATO - none of that stops ... and it's not just business owners. It's the people we employ who are losing shifts. It's the whole community."
She said businesses in the area were having a bumper season before the shootings, with the best snow in 20 years bringing more tourists to the area.
Local member Tim McCurdy estimated traders in Bright were down 70 to 80 per cent.
The Nationals MP for Ovens Valley said the damage extended as far as Myrtleford, where a bakery had lost 40 per cent of its take.
Mr McCurdy said the move to lift restrictions was a "massive breakthrough" for businesses that would trigger the region's economic recovery, but warned it would not happen overnight.
"It's not as if people start rocking in the door today," he said.
"If we didn't get the ban lifted and this went on for another three or four weeks, some businesses would literally close down."
While police say the region is safe for visitors, Mr McCurdy conceded some could be scared away by the spectre of Freeman.
He called for the Australian Tax Office to provide relief regarding business activity statements.
Victoria Police Acting Deputy Commissioner Russell Barrett said the decision to lift some restrictions struck a balance based on the community's reliance on tourism.
"We need to work with them to ensure their livelihoods aren't being impacted by what is a massive search," he told Nova radio Melbourne on Monday.
The change in restrictions comes days after Victoria Police conducted the largest tactical police operation in Australia's history, with more than 125 specialist officers from interstate and New Zealand.
Police refused to say whether the search uncovered any sign of Freeman or evidence he had been in the area since the shootings.
A $1 million reward is being offered for information leading to his capture - the largest financial reward for aiding an arrest in Victoria's history.
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