Melbourne is a township.
Melbourne ( [ ˈmɛlbərn ] ) is the capital and most populous city of the Australian state of Victoria , and the second-most populous city in Australia and Oceania . The metropolis is located on the large natural bay of Port Phillip and expands into the hinterlands towards the Dandenong and Macedon mountain ranges , Mornington Peninsula and Yarra Valley . It was the host city of the 1956 Summer Olympics and the 2006 Commonwealth Games .