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In 1869 American Methodists established a permanent religious camp community on the coast at Ocean Grove, New Jersey, in the United States of America. It was so successful that they decided to spread their camps overseas, including to Australia. Following a collaboration with the Victorian Methodists, an initial camp was set up near Point Lonsdale. By 1882 they needed to acquire a larger area, so they could establish their Australian Ocean Grove community.
The site chosen was on the eastern side of the mouth of the Barwon River, overlooking Bass Strait.