Benalla (pop. 9,742) is a city in northeastern Victoria, Australia, about 120 miles (193 kilometers) from Melbourne. Lake Benalla, formed by the Broken River, provides a pleasant setting for the city. Farmers in the district raise sheep and cattle. Factories in Benalla make carpeting and draperies, electrical transformers, carpet yarn, and sportswear. The Scottish explorer Major Thomas L. Mitchell crossed the Broken River near the present site of Benalla in 1836. The first European settlers arrived in the district in 1839. During the 1870’s, Benalla was the headquarters of the search for the Kelly gang. The borough of Benalla became a city in 1965.