Moreland council in Melbourne's inner north has voted to change its name to Merri-bek following a community survey to find a replacement for the current slavery-linked name.
In consultation with Wurundjeri elders, the council put three Woi-wurrung names in a survey to residents.
An overwhelming majority of the 6,315 votes went to Merri-bek, meaning "rocky country".
Deputy mayor Lambros Tapinos said it was a historic day for the council and local area.
"It's a reintroduction of a name that existed here for thousands and thousands of years.
"It is a name that is more accurately describing the land which this municipality sits on and its native language."
Wurundjeri elder Bill Nicholson welcomed the name change.
"To me, it's a great starting point to move forward," he said.
"So congratulations to the council and thanks for the opportunity to share our culture and our language."
Wurundjeri elder Tony Garvey said it was a "big step forward" for Aboriginal people.
"I think this is the start of something big," he said.
"Just remember if you're on Aboriginal sites that it's important that we try stick to the traditional ways and the traditional names."
The state government named the council Moreland in 1994 when Brunswick, Coburg and part of Broadmeadows council areas merged.
The area was initially named Moreland in 1839 by land speculator Farquhar McCrae, who named it after a Jamaican slave plantation run by his father and grandfather.
Some councillors slam consultation process
Councillors Oscar Yildiz, Helen Davidson and Helen Pavlides-Mihalakos voted against the motion, while the other seven councillors in attendance voted for the motion.
Mr Yildiz said there was not enough community consultation about the change.
He said there should have been a fourth option in the survey to leave the name as Moreland.
A few other councillors acknowledged that some residents opposed the name change.
Councillor Sue Bolton said there should be more community education to help residents understand the dispossession of Aboriginal land and intergenerational trauma.
"I hope the council goes further in trying to help people understand why this is so significant," she said.
Ms Pavlides-Mihalakos said the money that will be spent on the name change could be better spent elsewhere.
"Who will be paying for this cost? Us, the Moreland ratepayers," she said.
The council has allocated $500,000 over two years to change signs and materials.
The change will now need to be approved by Local Government Minister Melissa Horne and Victoria's Governor Linda Dessau