The Island is located at Thompson Bend on the Yarra River at Warrandyte, Victoria, Australia, approximately 24 kilometres (15 mi) north-east of Melbourne. It was created by gold miners in 1859-60, during the Victorian gold rush. They dug a diversion channel to alter the course of the Yarra River, providing access to the alluvial gold in the exposed river bed. The canal was widened by subsequent flooding becoming the main river course, with the previous river bed becoming a willow-choked backwater.