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Melbourne is in the local government area of 'Melbourne'. The 'Melbourne' local government area is classified as a 'City'.
The Melbourne local government area includes around 15 cities, towns, villages and localities including Melbourne (pop. about 3.2 million), Jolimont, Parliament, Princes Bridge, Flinders Street, Melbourne Central, Flagstaff, Royal Park, Spencer Street, North Melbourne, South Kensington, Interstate Freight Terminal, Dynon Road Freight Terminal, Showgrounds and Flemington Racecourse.
A local government area (abbreviated as 'LGA') is an area controlled by a local government. Local government areas can provide a useful way to group statistical information.
If you're interested in Cities, Towns and Villages then you may also be interested in Suburbs/Regional Areas.