The addition of 20 cameras to last year's installation of 23 is intended to increase law enforcement's ability to intervene early when disruptive or criminal behaviour occurs in public.
Member for Northern Victoria Mark Gepp said it was important people were aware the cameras were in place.
“This will drive behavioural change and bring about a safer Shepparton,” he said.
“So for people going about their day-to-day business, they feel a lot more assured when these cameras are in operation.”
Mr Gepp said the funding provided by the government was part of an $8 million spend across the state via the Public Safety Infrastructure Fund.
City of Greater Shepparton Mayor Kim O'Keeffe said the aim was to make the city "a safe place for all".
“We have those cameras monitored every single weekend by council staff,” she said.
“Safety needs to be, and is, a growing priority across Greater Shepparton.”
Situated in carefully selected locations, including the Shepparton CBD, the sports precinct, and at Victoria Park Lake, the cameras are monitored by council employees and Victoria Police.
“I'm sure the additional cameras will provide added safety and extra resources to ensure the community feels safe at any time of the day,” Cr O'Keeffe said.
Installation spots were chosen on the back of crime statistics data, community perceptions of safety survey results and consultation with police and experts.
The main network control station is located at the Shepparton Police Station watch house.
Footage has been downloaded for the purpose of police investigations on 70 occasions during the last 12 months, according to Inspector Bruce Simpson.
He said the cameras also helped prevent criminal activity.
“I think it gives us the ability to get in early, so that we can take proactive measures, before the crime's actually occurred,” he said.
“I'm absolutely confident that that's happened.”
If further expansion of the network was desired, Mr Gepp said the council could apply for a portion of an additional $30 million in government funds that was set aside for community groups and councils to improve community safety.