PORT Fairy in Victoria's south west is on the world's radar after winning an award for being one of the most liveable communities.

Port Fairy was awarded the international accolade at the Livcom ceremony in the United Arab Emirates city of Al Ain last night.

The Livcom awards recognise the efforts of towns and cites across the globe to promote areas such as healthy lifestyles, environmental practices, community involvement, art and cultural heritage.

The Victorian coastal town with a population of fewer than 10,000 people was the only Australian town to be a finalist in the "Population of up to 20,000" category.

It stole the gold medal from Irish towns Abbeyleix and Moynalty which came in second and third, respectively.

Kogarah City in Sydney was the only other Australian town to be recognised, awarded second place in the 'Population 20,001 to 75,000' category.

The annual Livcom award is recognised by the United Nations Environment Program.

Moyne Shire mayor Jim Doukas was in Al Ain last night to accept the award on behalf of Port Fairy.

Moyne Shire deputy mayor James Purcell said the town was deserving of the title because of the attractions the community had to offer.

"It's a combination of great living, natural resources and some excellent man made attractions,'' Cr Purcell said.

"We have 70 National Trust listed buildings, a great supported working port and many other great things that make it the most liveable community.''

Cr Purcell also said the accolade was a reflection of the restaurants and the events held in Port Fairy, making special mention of the upcoming festivals.

"We hold events such as the Pride festival, Spring Music festival and many surf events,'' Cr Purcell said.

"We also about to have the Moyneyana festival over the summer.''

The 2013 Livcom awards will be held in Xiamen, in China.