Cheltenham is a residential suburb 18 km south-east of Melbourne adjoining the bayside suburbs of Beaumaris and Mentone. Its name came from the Cheltenham Inn, opened by Charles Whorral from Cheltenham, Gloustershire, England, in 1853 in the place known as Two Acre Village (1852).

The land-owner, Josiah Holloway, who subdivided the land into two-acre lots formed a northwards track, now Chesterville Road, from the Brighton Road (now Nepean Highway). The intersection of these two routes formed the nucleus of Cheltenham.

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