Melbourne, the capital of Victoria and the second largest city in Australia, has gained international notoriety for its diverse range of street art and associated subcultures. Throughout the 1970s and 1980s, much of the city's disaffected youth were influenced by the graffiti of New York, which subsequently became popular in Melbourne's inner suburbs, and along suburban railway and tram lines.
Melbourne was a major city in which stencil art was embraced at an early stage, leading to the naming of Melbourne as "stencil capital of the world"; the adoption of stencil art also increased public awareness of the concept of street art. The first stencil festival in the world was held in Melbourne in 2004 and featured the work of many major international artists.
Around the turn of the 21st century, other forms of street art began to appear in Melbourne, including woodblocking, sticker art, poster art, wheatpasting, graphs, various forms of street installations and reverse graffiti. A strong sense of community ownership and DIY ethic exists amongst street artists in Melbourne, many of whom are activists for the progression of society through awareness, created in part by their work.
Many galleries in the City Centre and inner suburbs have started to exhibit street art. Prominent Melbourne street artists were featured in Space Invaders, a 2010 exhibition of street art held at the National Gallery of Australia in Canberra.Hosier Lane is Melbourne's most famous laneway for street art, however there are many other laneways in the inner city that have a plethora of street art.