The area has heavy and light engineering, extensive manufacturing, commercial and retail activities (including Melbourne markets and central business district), dockyards, clothing and footwear industries, warehousing and distributing of whitegoods, building and other general goods.

Melbourne also has a higher than average university education rate, with 44.8% of electors holding a bachelor's degree or above.

Labor first won the seat at a 1904 by-election, and held it for over a century, with former Opposition Leader Arthur Calwell the highest profile member.

During this time, Labor's hold on the seat was only remotely threatened once, when Calwell saw his majority trimmed to 57.2 percent amidst the Coalition's landslide victory in 1966.

At the 2007 election, Melbourne became a marginal seat for the first time in a century, even as Labor won a decisive victory nationally.