The Royal Women's Hospital has a proud 150-year history of innovation and achievement but its future looms just as exciting, says Premier Steve Bracks.

Launching the hospital's 150th anniversary celebrations with Health Minister Bronwyn Pike, Mr Bracks said the new Royal Women's Hospital being built on the corner of Flemington Road and Grattan Street would ensure it retained its reputation as a world leader in women's health.

'The new, state-of-the-art $250 million hospital will place the focus of the Women's firmly on the future,' said Mr Bracks.

'Its past is equally as impressive, however, growing from humble beginnings in 1856 as a place where underprivileged women could give birth and receive nursing and medical attention.

'Over the following 150 years, it became one of the world's most distinguished hospitals of its kind.

'It opened as the Melbourne Lying-In Hospital and Infirmary for Diseases Peculiar to Women and Children, based at Eastern Hill, then moved to its current Carlton site two years later.

'It was the first hospital in Australia to train nurses and students were first admitted for training as nurses and midwives in 1862.

'In 1930, it held the first post-graduate classes for nurses in Australia.

 'Australia's first test-tube baby was born at the Royal Women's in 1980 and the hospital's research team was the first in the world to publish the full report of the IVF procedure.

'The beginnings of the hospital's research focus began with the fertility and sterility clinic which started in 1945 and the Royal Women's Hospital now enjoys an international reputation,' Mr Bracks said.

Ms Pike said the number of births at the Royal Women's Hospital had increased by 10 per cent over the past two years, to 5,917 in 2005/06.

Births in all Victorian public hospitals increased by six per cent over the past year.

'Last year, 65,936 babies were born in Victoria—a huge increase on the 63,082 born the previous year.

'This boom is a huge vote of confidence in the system by Victorian women and their families.

'This Government's investment in maternity services means we are well-placed to handle this huge increase in births.

'The upward trend is continuing and most hospitals are reporting higher booking numbers in the next month or so.'

Ms Pike said the new Women's had been designed to meet the needs of women and their families into the future.

'The design extends women-centred, family-friendly birthing care throughout the new hospital's entire Birth Centre, rather than limiting this model of care to a single zone.

'Women will have a choice between different options of care and continuity of care.

'The hospital will herald a new era for women's health.

'Not only are we creating a new hospital but an opportunity to lead the way in women's health and wellbeing.'

Ms Pike said the existing RWH would remain open and fully-operational until the new hospital was opened in 2008.