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Coode Island was created in 1886 when a shipping canal was constructed through Fishermans Bend , to allow access from the wharves to Yarraville . By 1909 the area was being used as an animal Quarantine station and Sanatorium for victims of Bubonic Plague . By the 1920s the area was inhabited by Hermits living in huts and abandoned ships. In the late 1920s the Larkin Aircraft Supply Company had set up operations on the island, including a factory and Aerodrome , which was used until World War II .

In 1960 the area began being used for the storage of Petrochemical s. In 1968 Swanson Dock was constructed, which reduced the size of Coode Island.

On 21 August 1991 lightning struck one of the storage tanks, creating the Coode Island Explosion . 8.5 million litres of chemicals burned, creating a toxic cloud over nearby residential suburbs, which were fortunately dispersed by high winds. Proposals were made to move the facility to Point Lillias near Geelong , but Environmental and Aboriginal heritage concerns thwarted the plans. In 2000 the Bracks Government announced that Coode Island would be the site of Victoria's major petrochemical storage facility, with six companies leasing the facility from the Melbourne Port Authority .


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