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Marysville is located within the heavily forested mountains of the Great Dividing Range, a short drive off the Maroondah Highway between Healesville and Alexandra.

Due to its scenic and peaceful location, Marysville has long been a popular holiday retreat for visitors, especially during the spectacular springtime blooming season and the colourful autumn period. Its history dates back to the mid-1800s when gold was discovered in the area, however it wasn't long before guest houses were established and the town became a favourite for honeymooners due to its tranquil setting amongst native bush and waterfalls.

The town centre of Marysville is situated along the shady avenue of Murchison Street which has been landscaped to reflect the town's natural environment. Street gutters along one side of the road have been replaced by a meandering rocky stream lined with native grasses featuring bridges leading to shop doorways.

Marysville is situated on the Steavenson River, which runs adjacent to the town centre and is lined by parks and gardens. The river runs through the town's major park, Gallipoli Park, which features a sports oval, a lake and walking tracks. A short drive south-east of the town centre is the Steavenson Falls which are one of Victoria's highest waterfalls. The falls are a short walk from the car park and are floodlit until midnight each evening.

Marysville is an ideal spot for bushwalking, with many tracks through the surrounding forests having originally been timber tramways which were used to haul logs to local timber mills. Keppels Lookout, accessed via a walking track from the town centre or by car along Paradise Plains Road, offers stunning views of the landscape and forests surrounding Marysville. Good views can also be enjoyed from the top of Mount Gordon Road which is accessed from the road between Marysville and Narbethong.

An interesting tourist drive is along Lady Talbot Drive which is accessed via Woods Point Road just east of town. Attractions along this route include the Phantom Falls, Keppel Falls, Taggerty River crossing and The Beeches Rainforest Walk which is a scenic 4 kilometre circuit through ancient rainforests with many trees over 300 years old.

Around 20 minutes drive east of Marysville is Lake Mountain which rises to a height of 1,432 metres and offers fantastic views of the Victorian Alps. During the snow season, the mountain offers visitors cross country skiing, while at other times of the year bushwalking along the scenic ski trails is a popular activity.

The village of Buxton, 11 kilometres north of of Marysville is set along the Steavenson River and at the southern tip of the Cathedral Range State Park with its huge rocky peak. Buxton includes a hotel, general store, an attractive park along the river and a trout and salmon farm.