Dunalley is a rural / residential locality in the local government areas of Sorell and Tasman in the South-east LGA region of Tasmania. The lo…Dunalley is a rural / residential locality in the local government areas of Sorell and Tasman in the South-east LGA region of Tasmania. The locality is about 31 kilometres south-east of the town of Sorell. The 2021 census recorded a population of 304 for the state suburb of Dunalley. It is a small fishing village on the east coast of Tasmania.