Wye River is a small town in Victoria, Australia. It is also the name given to the waterway which flows through the town and into the sea. Situateā¦Wye River is a small town in Victoria, Australia. It is also the name given to the waterway which flows through the town and into the sea. Situated 155 km to the west of Melbourne, on the Otway Coast, part of the scenic Great Ocean Road, the Wye River township is located about 15 km west of the resort town Lorne, Victoria. It became more feasible for Melburnians to holiday there after the section of the Great Ocean Road from Lorne to Apollo Bay was opened in 1932. At the 2016 census, Wye River had a permanent population of 66, although its holiday population is ten times that.