Yes. The local weather page is based on localities and the coordinates at the top of the page are for something approximating the centre of town (often the GPO). It draws data from [potentially different] weather stations together for the different sections based on their proximity to the locality of interest.
The page locates the closest (a) weather station with automatic observations, (b) location with a 3-hourly forecast, (c) location with a 7-day forecast, (d) weather station with daily observations and (e) weather station with both (d) plus climatology. These are for the current conditions, 12-hour forecast, 7-day forecast, past 5 days and almanac panels respectively. Each of stations may be quite different depending on the town - see
Harrietville for an example, and hover over the underlined location names to see how the weather station relates to the locality (e.g. [Omeo is] 53km ESE of Harrietville and 189m higher).
When you click off to a page which pertains to a specific weather station (e.g. 24-hour graph, this month, full climatology) you see the details of the actual station in question.