Melbourne is a city in Australia.
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 . Melbourne City Centre ( sometimes referred to as `` Central City '' , and colloquially known as simply `` The City '' or `` The CBD '' ) is an area of Melbourne , Victoria , Australia . Port Phillip ( also commonly referred to as Port Phillip Bay or ( locally ) just The Bay ) , is a large bay in southern Victoria , Australia ; it is the location of Melbourne . The seat of government is ( as defined by Brewer 's Politics ) `` the building , complex of buildings or the city from which a government exercises its authority '' .