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Dunalley is a suburb of Tasmania, Tasmania and is about 40 kms east of TAS's capital city of Hobart. In the 2011 Australian census the population of Dunalley was 274 when there were 141 Females and 133 Males living there. The median age for people living in Dunalley was 47. Dunalley is a small fishing village on the east coast of Tasmania, Australia. It is part of the Sorell Council. Dunalley is approximately 20 minutes from Sorell. It is located on the narrow isthmus which separates the Forestier and Tasman Peninsulas from the rest of Tasmania. Dunalley is a quiet fishing village known for its super-fresh seafood. Located on the way to Port Arthur near a narrow strip of land that connects the Forestier and Tasman Peninsulas with the rest of Tasmania, Dunalley is peaceful and pretty with beautiful bay-side scenery. It also features the impressive Denison Canal, originally dug by hand over a century ago to connect the two surrounding bays and significantly reduce the travel time between the East Coast and Hobart.