Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia.The Melbourne City Centre. It is a leading financial centre in Australia, as well as the Asia-Pacific region, and has been ranked the world's most livable city since 2011. Melbourne is rated highly in the areas of education, entertainment, healthcare, research and development, tourism and sports. Melbourne is located in the south-eastern part of mainland Australia. Melbourne has a population of 4.35 million, and the fastest growing population among Australian capital cities. Inhabitants of the city are called Melburnians.