Gracetown is a small town in Western Australia. It is located 269 kilometres south of the Perth central business district, and 21.5 kilom…Gracetown is a small town in Western Australia. It is located 269 kilometres south of the Perth central business district, and 21.5 kilometres north-west of the township of Margaret River in the Augusta-Margaret River Shire Council area on the coast at Cowaramup Bay.