Premise: 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 . After the federation of Australia in 1901 , it served as the nation 's interim seat of government until 1927 . It was the host city of the 1956 Summer Olympics and the 2006 Commonwealth Games .
Hypothesis: Melbourne is in a place.
Label: ENTAILMENT