Hinch died on July 10 at the age of 82 after a lengthy health struggle, much of which he documented for followers on social media.
A state funeral for the former broadcaster and senator on Monday has attracted notable figures, including news presenters Ray Martin and Denis Walter, entertainers Rhonda Burchmore and Greg Evans and former Crown executive Ann Peacock.
The service for the lifelong atheist, who went to jail for identifying a paedophile Catholic priest before his trial, began at midday at the Timber Yard events space in Port Melbourne.
Mourners streamed in to pay their respects at the venue, situated in the middle of factories and apartments devoid of any religious leaning.
An Australian flag was draped over his casket, surrounded by vases of red roses symbolising deep love, respect, courage and enduring affection.
A wreath signed by Premier Jacinta Allan was left onstage with a note expressing sympathy for Hinch's family on behalf of the government and state.
His farewell was expected to use the music of That's Life by Frank Sinatra, often used as the sign-off from his daily radio show.
While commanding the airwaves for decades as a talkback radio host on Melbourne radio station 3AW, Hinch became known for his uninhibited takes and a tendency to court controversy.
His passing drew tributes from a broad range of public figures spanning the political spectrum, including Prime Minister Anthony Albanese and Opposition Leader Angus Taylor.
A statement released by the Victorian government remembered Hinch as living a life defined by his principles and an unwavering commitment to stand up for what he believed was right.
"Derryn will be remembered as a legendary journalist and broadcaster who used his voice for those who didn't have one," it said.
"He had the courage of his convictions and his legacy of advocacy and search for justice will live on."
Hinch initially moved from New Zealand to Australia to pursue a career in journalism, climbing the ranks to become editor of The Sun, before turning to a career in radio.
He became known as the "human headline" - a moniker he enthusiastically adopted - for his outspoken and often controversial opinions.
Later, Hinch turned to the political arena, forming Derryn Hinch's Justice Party and serving as a senator for Victoria in the federal parliament from 2016 to 2019.
His party focused on reforms to the justice system including better protections for children, tightening of bail and parole laws, and the establishment of a sex offenders register.
Amongst a sea of tributes following his death, Mr Albanese said Hinch lived a life rich in colour and free from fear.