I agree with Antoinette! Walking is a great way to explore Melbourne's iconic laneways while trams are terrific to travel further afield. For the budget-conscious there are great free trams that follow a circular route around Melbourne's CBD. These travel in both directions, and tend to be rather slow, but they're usually gorgeous old trams dating back to the early 1900s. If you're a history-lover like me you'll love them! There is also a free buses that takes another route...I didn't take that, though, so visit a tourist bureau if you want to learn more about those.