Murwillumbah lies on the banks of the Tweed River, in the shadow of Mount Warning and part of the caldera of the Tweed Shield volcano. The town lies 13 km south of the Queensland border and 130 km south of Brisbane. Given its volcanic origins, the local soil is particularly rich, rainfall is high and, as a result, cattle and sugarcane farming ensure the valley's abundance and prosperity. The town's name is of Aboriginal origin, and in Bundjalung means either "a good place to camp by the river" or "a good place to catch possums".

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