Regional Cities Victoria (RCV) has proposed an $80 million package to be spent on sporting facilities, parklands, open spaces and a tourism campaign for the games.
The Commonwealth Games are expected to generate about $3 billion for Victoria, but funding allocations for the event were absent in recent state and federal budgets.
The Games will be held across parts of regional Victoria, including Geelong, Bendigo, Ballarat, Gippsland and Shepparton.
Ballarat high-jumpers Yual Reath and Lachlan O'Keefe said they hoped improved facilities would bring more events and competitors to the regions.
"It will definitely improve everything, I reckon we'll definitely get more kids and just anybody to come out and try athletics," Reath, who is training to qualify for the 2024 Olympics, told reporters in Ballarat.
Ballarat mayor Des Hudson said councils were advocating on what regional towns needed ahead of the Games, despite fiscally challenging times.
RCV chair and Bendigo mayor Andrea Metcalf said the 2026 Games represented a unique opportunity that should benefit the whole state.
"This is the time for regional Victoria to shine on the world stage and we must ensure that we build on this exposure, maintaining momentum as we showcase our amazing regional cities and get long-term value out of the investment made through the Games," she said.
"It is a priority that First Peoples and traditional owners are engaged in all aspects of the games delivery and ensure they reflect Victoria's rich cultural history."
Regional cities needed assurance the state government would invest in its regions after the regional jobs and infrastructure fund was discontinued in May's budget, she said.
A Victorian government spokesman said more than $41 billion had been spent across rural and regional Victoria since 2015.
"We're getting on with delivering the Commonwealth Games, with our $2.6 billion to ensure a long-lasting legacy across regional Victoria," the spokesman said.
"Victoria 2026 will create local jobs, deliver a legacy of affordable and social housing and world-class sporting facilities, boost inclusion and participation - delivering the significant economic benefits of one of the world's largest sporting events to regional Victoria - before, during and after the competition finishes."
About a quarter of Victorians - 1.5 million people - live in regional areas and more than half of those live in regional cities.
The RCV proposal calls for hosting and training opportunities in regional Victoria, $2 million for each of its 10 member councils to upgrade sporting facilities, $30 million for parks and open spaces and $30 million for a tourism campaign.
It also wants free cultural activities, a new local Victoria Skills Authority liaison officer based in each regional city and a commitment that regional and Indigenous-owned businesses would be at the top of procurement lists.
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