This follows people creating a mess or damaging public litter bins when rifling through them for CDS Vic eligible cans, bottles and small liquid paperboard containers such as juice boxes.
To make it easier for people to correctly bin - or collect - these recyclables, Council is installing metal "baskets" on about 80 public litter bins across Port Phillip, with another 20 to come.
CDS Vic has partnered with Council to help fund the rollout.
The idea is that people can conveniently toss a used eligible drink can, bottle or container into the basket - rather than a litter bin - for return though the scheme.
It can then be scooped up by any member of the public and taken to a CDS Vic outlet for a 10-cent refund.
"We hope that by making it easier to collect CDS recyclables, our bins won't be damaged and we'll be diverting more from landfill," Mayor Louise Crawford said.
"We did try installing more public recycling bins but found they were being contaminated by litter.
"So this is hopefully a simple solution which benefits everyone, including local sporting and community groups which raise funds through collecting cans and bottles."
Jim Round, CEO of scheme coordinator VicReturn, hoped the bin basket rollout would improve CDS Vic participation and reduce litter ending up in Port Phillip Bay.
"Port Phillip is the first LGA we are trialling our CDS Vic bin baskets to support recyclers in a safer and accessible way, and we can't wait to see them in the wild," Mr Round said.
"When you're out and about, leave your empty eligible drink containers in one of our new baskets, or collect the ones already there for a 10-cent refund."
The baskets have been installed on litter bins in high-traffic areas including bus routes and major intersections.
The trial, and next steps, will be evaluated in nine months. The results of the trial will be shared as a case study to other councils interested in following Port Phillip's example.
CDS Vic has proved popular in Port Phillip, with more than 12 million containers returned across the City since its introduction in 2023.
