The Dolphin Project is near the town of Grassy, on the south east coast of King Island, the most western large island in Bass Strait. Grassy has historically been a mining town, developed to service the Dolphin Mine up to 1992.

King Island has a population of approximately 1,200 people. It is heavily developed for beef and dairy farming and has a large kelp harvesting industry. The main commercial centre is Currie, located on the west coast of King Island and approximately 25km by road from the mining and port town of Grassy.