From the moment the first Melbourne Cup was held at Flemington Racecourse in 1861, fashions on the field has enthralled a nation.

Often taking their cues from the Royal Ascot races in England, Australian racegoers have built on a tradition of formal day wear with a distinct local flair.

In 1897, ACM's The Launceston Examiner observed of the year's Melbourne Cup day fashion that "the styles were varied, so much so that one can only understand that to be fashionably dressed, one only has to decide upon that which strikes one's fancy."

"And if it stands quite alone, so much the better it's originality will proclaim the wearer's exceptional taste, and will gain for her compliments of many women who are more often glad to copy than to design."

Melbourne based milliner Louise Macdonald, whose designs have featured in films including Pride and Prejudice and Howard's End, cites the 1940s as an era which continues to inspire her millinery.

"The 1940s was all about smaller pieces. It was postwar and women were having to be thrifty with the material, so the hats were often sort of smaller and probably more quirky," she said.

"So there's some really wonderful little pieces from the 40s that I've enjoyed being inspired by."

The Fashions on the Field competition was first introduced in 1962 as an incentive for more women to attend the races. Back then, the winner could look forward to a return trip for two to the UK.

The competition continued to evolve throughout the 60s, new sections were added, celebrity judges provided additional glamour, and thanks to some generous sponsors, a rich prize pool was on offer.

Hopeful entrants were also enticed by a generous prize pool of 7,000 pounds and could enter in two categories, outfits under 30 pounds and outfits over 50 pounds.

In 1965 English model Jean Shrimpton caused a national stir with her casual take on race fashion. In one of Australian history's most famous fashion scandals, on her first day at the races Shrimpton arrived without a hat and gloves, scandalizing the matrons of the women's stand who viewed these accessories as an essential part of the dress code.

But it was her mini skirt, demure by today's standards, that famously prompted commentators to observe 'the legs that stopped a nation'.

The Canberra Times lauded her dress as a feminist statement and labelled Shrimpton "a liberator of the young from bondage, an emancipator of women, the creator of a new social climate."

Indeed, by the following year, miniskirts were seen all over Flemington.

During the 1970s bell bottom flares, pointy collared shirts and the pant suit entered the lexicon of racing fashion and ushered in a new era where women were no longer confined to skirts and dresses. Women's Weekly observed that the 1971 Melbourne Cup was "the moment hats made a comeback". Unfortunately the weather didn't co-operate, and women racegoers spent their time frantically clutching their big hats.

The fashions on the field competition was briefly disbanded and reinstated in the 1980s.

The eighties were a colourful decade for fashion internationally, with shoulder pads and block colours infiltrating race day sartorial choices. In 1985 Princess Diana, then 24, arrived in a black and white Bruce Oldfield suit and matching monochrome hat designed by Australian milliner Frederick Fox, who was born in Urana, a small town in NSW's Riverina. Her choice reflected the era's penchant for formal attire inspired by work wear, heavy on blazers and suits.

Today, races attire has all but shed the pomp and royal nostalgia of previous decades and moved towards modern silhouettes. From movie stars to WAGs, today women embrace figure hugging styles Jean Shrimpton never could have dreamed of.

Fashion designer and milliner, Gregory Ladner, said the sixties and seventies were the peak of races fashion.

"The late 60s, 70s, early 80s. that's when it was really at it's peak, I think. Now, girls wear petticoats and cocktail dresses. The races is a cocktail party now," Mr Ladner said.

Mr Ladner's elegant accessories and headwear are often on show at the Melbourne Cup, and he has been a fashions on the fields judge.

"Derby day used to be black and white. It was fabulous, as far as the eye could see everyone was in black and white, every woman there, it was fantastic," he said.

"I can barely say anyone is beautifully dressed these days, I think they forget to put their dress on half the time. But it's valid, it's fun, it's changed so much."

This year the Victorian Racing Club announced that it had outgrown conservative tradition and abandoned womenswear and menswear categories in favour of a more inclusive Best Dressed and Best Suited categories, open to people of all genders.

Louise Macdonald said between 60 and 80 per cent of her work is concentrated on the Melbourne Cup. She starts preparing in February.

"It's like Christmas really," she said.

The pandemic prevented public attendance at the Cup in 2020 and the crowd was capped at 10,000 in 2021. This year marks the return of the festival and is the most important week in the milliners calendar.

"The emerging designs this year are pill boxes that sit towards the back of the head, a little like the 1950s, sort of 60s style, so sitting towards the back of the head and framing their face with some detail," Ms Macdonald said, of trends in races fashion this year.

"There's a lot of people wearing halo style headpieces. So, a band or a bandeaux going across the top of the head, with different sorts of embellishments, quite a bit of veiling around embellishing hats."

As the fashion industry begins to embrace sustainability and ethical practices in design and production, milliners like Louise Macdonald have begun repurposing vintage hats to create upcycled creations for climate conscious buyers.

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"During COVID I got my hands on quite a few old hats that are made in the 1950s or 60s, and they're beautiful, finely woven straw that you just can't get any more. So I pull them apart and start turning them inside out and reshaping and blocking them to make some really beautiful new hats that are contemporary designs," she said.

While the races attract criticism for the treatment of the horses and the culture of gambling it promotes, the event brought $447.6 million dollars to Melbourne's economy in 2018, according to the Victorian government.

"I'm in a conundrum about the whole thing because I do care about the welfare of the horses but it does mean million of millions of dollars to the Melbourne economy," Mr Ladner said.

"But they should be more vigilant about how animals are treated, and there should be [a] watchdog on the racing industry."

This year fashions on the field will be judged by comedian Joel Creasey, Marie Claire editor Nicky Bridger and several others. The millinery competition will be judged by world renowned milliner Stephen Jones OBE.