The Victorian Government is setting up an independent inquiry into allegations of bullying and dysfunction at the Geelong Council.

The official commission comes after a review earlier this year by former federal sex and disability commissioner Susan Halliday, which reported a range of concerns about councillors and staff.

Local Government Minister Natalie Hutchins says the investigation will start with three commissioners.

“What it will be looking at is the efficiency and effectiveness of the governance structures in the greater city of Geelong and whether that is affecting the delivery of services to the Geelong community,” she said.

Ms Hutchins that after the initial report it became obvious there were deep flaws within the council.

“What we need to investigate with this inquiry is to have a look at whether that is deep seated in the current structure of the council, or whether it's a range of individuals that are at the council currently,” she said.

The commissioners are expected to report back in March.