Pubs, restaurants and cafes will be allowed to open to takeaway and delivery only.
From midnight on Wednesday the first suburb-specific stay-home order will be imposed on some 320,000 people, the Victorian state Premier Daniel Andrews told a news conference on Tuesday.
The Victorian state government requested all flights be diverted to other states to prevent the risk of imported cases.
South Australia premier Steven Marshall has thrown another spanner in the works for the AFL after announcing teams coming into the state from Victoria would be required to isolate for 14 days.
"We are all in this together and this is going to be deeply disruptive for those 10 postcodes".
"These are extraordinary steps, these are not things we have had to do in the past but such is the nature of this virus, it is so wildly infectious that if we don't take these steps now we will finish up in a situation [where rather] than locking down ten post codes we will be locking down every postcode", Andrews said.
In the 24 hours to Tuesday, Victoria reported 64 new cases, down from the previous day's 75 new cases.
The suburbs with the highest number of new cases in the state are Broadmeadows, Fawkner and Auburn Vale.
A person receives a Covid-19 swab test at a coronavirus pop-up testing facility in a north Melbourne suburb last week.
He said police would be actively enforcing the suburban lockdown.
"It will be a devastating impact on people and particularly local businesses, but we have to do it", he added.
The borders were scheduled to open on July 20, however in the light of Victoria's surge in coronavirus cases, the SA Government has made a decision to keep the Victorian border closed while considering opening to NSW and the ACT.
"We apologise to many people who have had to make changes because of our change of the date of 20 July but our number-one priority is the health, safety and welfare of all South Australians". If they do, they must undergo mandatory quarantine in a hotel at their own expense for a minimum of 14 days.
Last week, New South Wales, the country's most populous state, said it would continue to keep its border open as it focused on supporting its economy amid the pandemic.