Gracetown is a small town in Western Australia located 283 km south of Perth, in the Augusta-Margaret River Shire Council area on the coast at Cowaramup Bay.
The area was initially used as a holiday area and later in 1957 it was proposed that the area should be developed as a camping and caravan park. Instead the government decided that the area would be developed as a townsite. The area was surveyed in 1961 when the bulk of the townsite was planned.