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Coleraine is on the Glenelg Highway, 350 kilometres west of Melbourne and 35 kilometres north-west of Hamilton in the Shire of Southern Grampians.
Coleraine is a region service centre for the surrounding farming community. Agriculture in the region is predominantly sheep meat and wool production and beef production. Coleraine is a pretty township in a valley setting. It offers basic shopping, newsagency, post office and banking plus agricultural service businesses. Coleraine has a primary school and hospital, plus a racecourse and golf course.