Melton dropped a home match to Donvale in the Bowls Victoria metro pennant competition on Saturday.
Despite sitting higher on the ladder, Melton was unable to match it with their cross-town opponents, going down 16-84 to 2-72.
The defeat gives Melton a 4-3 record for the season, but it was able to hold on to third place on the division one ladder.
Donvale, also 4-3, jumped to fourth. In what is a tight division, just one win separates second-placed Werribee and seventh-placed Essendon.
Melton will look to bounce back this week when it hosts fifth-placed Elsternwick.
It was better news for the Melton division 2 side, which held on for a hard-fought win over Altona Sports, 14-88 to 4-84.
After being ninth on the ladder with just one win from four games two weeks ago, Melton has now jumped to seventh and is only one win from the top four. Melton will meet fourth-placed Williamstown this week.