The 28-year-old AIS & VIS aerial skier was selected from a star-studded list including world road race champion Cadel Evans, Australia's most successful winter sports athlete Dale Begg-Smith, rower Kim Crow, Matilda's captain Melissa Barbieri and world snooker champion Neil Robertson.
The announcement was made at the Victorian Sports Awards function at the Crown Entertainment Complex on Monday November 15, only weeks after Lydia won the Don award for the inspiring Australian sporting performance of the year.
Not surprisingly, Lydia was also named Victoria's female athlete of the year while Evans was honoured as Victoria's male athlete of the year.
The awards night was one to remember for the Mt Buller based aerial skiing program. The Olympic aerial team, was named as Victoria's female team of the year.
Vicsport Chief Executive Officer Mr Mark McAllion described Lydia as a most deserving winner of the state's top sporting award.
"Lydia not only performed extremely well to be crowned Olympic champion in Vancouver but the way she has conducted herself since has been a fantastic advertisement for Victorian sport," Mr McAllion said.
Lydia adds to an impressive number of Aerial Skier's to take out the Victorian Female Athlete of the Year joining Kirstie Marshall (1990, 1991, 1992), Jacqui Cooper (2000) and Alisa Camplin (2004) who have all won the award.