THE Victorian Government has pledged an extra $115 million in drought relief for the state's farmers as high weekend temperatures further diminished hopes for a good season.

Premier John Brumby said Cabinet had brought forward a package that would deliver immediate relief for farmers.

The major components of the package are $58 million for water rate rebates for irrigators and $15 million for 50 per cent subsidies on municipal rates.

It also includes $10 million for the Government's drought employment program, which employs people directly impacted by drought in projects that aim to protect environmental assets.

"Cabinet today decided to bring forward the Victorian Government's drought relief package, given the urgent need for assistance for Victorian farmers in the grip Australia's longest and hottest drought on record," Mr Brumby said.

"Today's package takes action to provide immediate drought relief to farmers, their families and the communities in which they live."

A further $10 million from the Small Towns Development Fund will be spent on infrastructure and boosting local jobs in drought-affected communities, while a further $2.9 million will be spent on boosting drought mental health services and support.

Mr Brumby said under the $58 million water rate rebate scheme, the Government would pay up to the first $1000 of water bills for all irrigators and stock and domestic farmers who are receiving less than 30 per cent of their water entitlements as of December 1.

"Irrigators whose water bill is more than $1000 will receive an additional 50 per cent rebate on the balance of bills above $1000," he said.

"This will provide relief for irrigators in drought-stricken regions across Victoria, and means that most will have their fixed water charges paid in full."

Mr Brumby said the package came on top of the $300 million which the Government had spent on drought assistance in the past two years.