Nestled at the heart of the vast Gippsland Lakes system, Paynesville is surrounded by 340 square kilometres of interconnected lakes and marshes, making it a paradise for boating enthusiasts. It’s the largest navigable inland waterway in Australia.

Located approximately 300 km east of Melbourne, Paynesville sits on the eastern end of Lake Victoria, historically known as Toonalook, an Aboriginal word meaning "place of many fish."

The Gunai Kurnai people were the original navigators of these waters, skilfully operating canoes across the lakes, rivers, and streams that define this spectacular region. They were the first to embrace classic boats in these waters, leaving a lasting legacy of maritime tradition. 

Formerly known as Toonalook, in 1886 the village was renamed in honour of Captain Charles Bradney Payne, Chief Harbour Master of Victoria in the 1870s. Over time, Paynesville evolved from a humble fishing village into a thriving hub for boat building and repair, a tradition that continues to this day.

Raymond Island, just across the McMillan Strait from Paynesville, is accessible by a short car ferry ride (free for pedestrians). The island is home to a unique blend of residential areas and untouched bushland, famous for its large koala population. A short walk from the ferry almost guarantees a koala sighting. McMillan Strait provides a spectacular, sheltered waterway for boating, offering a stunning natural amphitheatre for the Rally’s on-water events, including the Grand Parade, which is traditionally started by lighting a flare from the ferry.