He was born in Aberdeen and christened on 19 November 1829; his parents were Donald Melville and Margaret Jolly.
He worked as a clerk, but later migrated to Victoria where he was a wool store traveller.
Around 1871 he became an auctioneer at Brunswick; in that year he also married Kate Mackay, with whom he had five daughters.
He established D. Melville and Company around 1874, a firm of wool and grain brokers and auctioneers in Melbourne.
In 1904 he transferred to Melbourne North Province, and served until his death in Brunswick in 1919.