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Melbourne Most of Melbourne is located on the Florida mainland, but a minor portion lies on a barrier island, separated by the Indian River Lagoon. The island – in turn - is a narrow strip of land that separates the Lagoon from the Atlantic Ocean. (In prehistoric times the Lagoon was connected to the Ocean. Today, the only connection is by way of a handful of inlets, including the manmade Sebastian Inlet at the southern end of Brevard County.)