Victoria will have a second safe injecting room in the heart of Melbourne after a review found its first site had saved at least 21 lives.
But the state government has acknowledged it has more work to do to improve perceptions of safety issues near the original centre in North Richmond.
Premier Daniel Andrews has accepted every recommendation made by an independent review panel, which has been investigating the injecting room trial under way at North Richmond since mid-2018.
The recommendations include extending the North Richmond trial by another three years and setting up a second safe injecting room in the City of Melbourne.
There were 51 heroin-related deaths in the area between January 2015 and September 2019.
"There is a need for us to do more to save lives and change lives," Mr Andrews said on Friday.
He acknowledged he had needed convincing early on that creating an injecting room was a good idea.
But swathes of experts, law enforcement officials, ambulance workers and doctors helped change his mind, along with families who lost loved ones to drug addiction.
"When you hear stories of families that will never again be whole, families where there is a loved one missing, that grief, that burden, that tragedy is with those families, every minute of every day - you have to rethink things," he said.
The Department of Health and Human Services said its preferred spot for the new centre is community health organisation cohealth Central Melbourne on Victoria Street, a short walk from the city's Queen Victoria Market.
City of Melbourne Lord Mayor Sally Capp said on Friday evening her council was not consulted about the Victoria Street location of the new injecting room and was seeking an urgent briefing from the government.
"It's critical that a thorough consultation process is undertaken," Ms Capp tweeted.
Consultation will begin with the local community, Victoria Police, the City of Melbourne, local health and community services and other authorities to confirm the site is the most appropriate location by the end of the year.
Opposition mental health spokeswoman Georgie Crozier said the trials needed to be held in non-residential areas, arguing some businesses near the North Richmond site have struggled and some families have moved away.
"If Daniel Andrews was serious about protecting the community, he would immediately move the trial away from a school, family homes and small businesses," Ms Crozier said.
Modelling shows at least 21 lives have been saved by the North Richmond site.
The facility has received more than 119,000 visits, handled 3200 overdoses, and no one has died.
The new centre will maintain a minimum age of 18 and legislation will need to pass parliament to establish it.
The review panel found crime had arguably not gone up in North Richmond after the facility opened, but perceptions of crime remained an issue.
The government will spend more than $9 million on projects improving the area near the North Richmond facility, including public housing.
Loretta Gabriel's son Sam O'Donnell died of a heroin overdose at age 27 in August 2016 after using the drug in a laneway.
She said all of the current clients of the North Richmond injecting room had loved ones who were desperately worried about them, and were grateful a staff member can intervene if they encounter difficulties.
"My beautiful son Sam ... he would have be alive if we had it (the injecting centre) before he died," she said.
Reason Party MP Fiona Patten, who was a driver for the establishment of the North Richmond centre, said the review proved the facility was a lifesaver.
Australian Associated Press