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Derby is located in the West Kimberley region of Western Australia, on the King Sound, approx 220km north-east of Broome. Along with Broome and Kununurra it is one of the three largest towns in the Kimberley with a population of more than 4000 people.

For travellers in the Kimberley, Derby is also known as the beginning/end of the Gibb River Road.

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