Kennett River is a town in Colac Otway Shire, Victoria, Australia. Situated 174 kilometres west of Melbourne, on the Otway Coast portion of the …Kennett River is a town in Colac Otway Shire, Victoria, Australia. Situated 174 kilometres west of Melbourne, on the Otway Coast portion of the scenic Great Ocean Road, Kennett River is a popular tourist destination 27 kilometres from the resort town of Lorne, Victoria.