Collie is a town in the South West region of Western Australia, 213 kilometres (132 mi) south of the state capital, Perth, and 59 kilometres (37 mi) inland from the regional city and port of Bunbury. It is near the junction of the Collie and Harris Rivers, in the middle of dense jarrah forest and the only coalfields in Western Australia. At the 2021 census, Collie had a population of 7,599.

Muja Power Station is a power station 22 km (14 mi) east of Collie, Western Australia. It has eight steam turbines served by coal-fired boilers that together generate a total capacity of 854 megawatts of electricity. It is the largest power station in the South West Interconnected System, accounting for roughly 15 percent of capacity. The coal is mined in the nearby Collie Sub-basin. On 14 June 2022 the state government announced that Synergy would close Muja Power Station by 2029.