The Yoorrook Justice Commission has "cautiously" welcomed the Victorian government's announcement that the 2018 bail laws will be overhauled.

Yoorrook said on Monday it has heard extensive evidence about the disproportionate impact the laws are having on Indigenous people in Victoria, particularly Aboriginal women living in unstable situations.

The Commission noted that many witnesses giving evidence at Yoorrook hearings have called on the Victorian government to reform bail laws to stop people being unnecessarily imprisoned in pre-trial detention.

Commissioners visited four Victorian prisons in February, where they held roundtable discussions with First Peoples, including with women and men who were imprisoned on remand.

The Commission is holding public hearings on systemic injustices experienced by First Peoples in Victoria's child protection and criminal justice systems.

Yoorrook Justice Commission chair, Professor Eleanor Bourke, said it was pleasing to see the Victorian government "finally respond to this issue, which has been raised over and over again in the past five years, including during Yoorrook's public hearings and prison visits, and, notably, in the inquest into the death in custody of Veronica Nelson".

"Yoorrook Commissioners will look closely at the detail of these proposed changes and the extent to which they address the flaws in the system that have been identified by witnesses," she said.

"We anticipate hearing stories of significant trauma and injustice from witnesses at hearings this week. Overhauling the 2018 bail laws is only the beginning of what is needed to end the systemic injustice faced by First Peoples in Victoria's justice system."

Yoorrook's public hearings can be streamed via the Yoorrook website, with updates also provided on the Yoorrook Twitter account.