Melton Highway (formerly Keilor–Melton Road) (itself an evolution from the original Highways and Vehicles Act 1924) provided for the declaration of State Highways, roads two-thirds financed by the State government through the Road Construction Authority (later VicRoads). The State Highway (Keilor-Melton Road) was declared a State Highway in November 1989, from Western Freeway in Melton to Sunshine Avenue in Taylors Lakes where it meets the ramps to the Calder Freeway, then re-declared as the Melton Highway just over a year later in December 1990, within the same alignment.
The passing of the Road Management Act 2004 granted the responsibility of overall management and development of Victoria's major arterial roads to VicRoads: in 2004, VicRoads re-declared Melton Highway (Arterial #6040) from Western Freeway in Melton to Sunshine Avenue in Taylors Lakes.
In September 2018, the former level crossing through the Sunbury/Bendigo railway line was replaced by a new 6-lane bridge overpass, with new bike lanes and footpaths on each side, and new paths underneath. The railway carries more than 200 trains each weekday and the road carries 38,000 vehicles per day.