The Shire of Colac Otway is a local government area in the Barwon South West region of Victoria, Australia, located in the south-western part of the state. It covers an area of 3,433 square kilometres (1,325 sq mi) and, at the 2011 Census, had a population of 20,345. It includes the towns of Apollo Bay, Beeac, Beech Forest, Birregurra, Colac, Cressy, Forrest, Johanna, Kennett River, Lavers Hill, Warrion and Wye River. It was formed in 1994 from the amalgamation of the City of Colac, Shire of Colac, Shire of Otway and part of the Shire of Heytesbury.