Melbourne, Iowa is a small town located in Marshall County. It experiences a humid continental climate, characterized by cold winters and hot, humid summers. Average temperatures range from around 15°F (-9°C) in winter to approximately 85°F (29°C) in summer. Precipitation is evenly distributed throughout the year, with an average annual rainfall of 36 inches (91 cm) and occasional snowfall during winter months.

The town of Melbourne is situated near the Iowa River, making it a part of the Cedar River watershed. This hydrological system contributes to the town's natural beauty and provides opportunities for outdoor activities such as fishing, canoeing, and kayaking. The river also attracts wildlife, making it a great spot for birdwatching enthusiasts.

In addition to the river, Melbourne offers various outdoor recreation opportunities. Residents and visitors can explore the nearby Hickory Hills Park, which features hiking trails, picnic areas, and a campground. The park's lake allows for fishing and boating activities. Surrounding rural areas also provide scenic landscapes for activities like biking and hiking.

Overall, Melbourne, Iowa offers a diverse climate and natural environment, providing residents and visitors with ample opportunities to enjoy outdoor recreational activities year-round.