Peter Walsh has resigned as leader of the Victorian Nationals, with Gippsland South MP Danny O'Brien elected unopposed as his replacement on Monday night.
"He's been an absolute champion of regional Victoria for 22 years in parliament now, but long before that as well," Mr O'Brien said of Mr Walsh on Tuesday.
'He has been a fantastic leader, a voice of reason, of source of wise counsel, and someone who has maintained us as a team through some pretty difficult times."
Mr Walsh, 70, has been a fixture of Victorian parliament since 2002, leader since December 2014, and will continue as the MP for Murray Plains.
Mr O'Brien was born and raised in coal country in the southeast Victorian region of Gippsland, and is a former journalist and media advisor.
He served as a senior advisor to former deputy prime minister and federal Nationals leader Mark Vaile, and was chief of staff to Barnaby Joyce before winning preselection to replace state MP Peter Hall in Eastern Victoria in 2014.
Emma Kealy will remain as the Nationals deputy to new leader Danny O'Brien. (Joel Carrett/AAP PHOTOS)
"To be elected leader of the Nationals is an absolute privilege and just an enormous honour for me" Mr O'Brien said.
"As leader of our great party, I will fight every day for country people to get a fair go."
Mr Walsh will move to the back bench and drop the Aboriginal Affairs portfolio as a result.
Eastern Victoria MP and Nationals whip Melina Bath will take his place in shadow cabinet.
Lowan MP Emma Kealy will continue as deputy leader.
Peter Walsh will move to the back bench after stepping down as Nationals leader. (Diego Fedele/AAP PHOTOS)
Mr Walsh helped his party net an extra three seats at the 2022 election, giving the Nationals nine of the 88 lower house seats.
The Liberal Party gave away two seats to win 19, prompting Mr O'Brien to publicly raise questions about the future of the coalition.
Chided for talking outside the party room at the time, the incoming leader raised no such doubts in front of the cameras on Tuesday.
"The coalition remains very strong and will continue to remain very strong under my leadership," Mr O'Brien said.
"John Pesutto is doing a fantastic job in turning around the fortunes of the opposition and making sure that come 2026, Victorians will have a strong alternative to the current, terrible Labor government."
Treasurer Tim Pallas said he had great respect for Mr Walsh and he deserved enormous credit.
"Whatever he decides to do, he goes knowing that he's made a great contribution to the state," he told reporters.
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