Paynesville is a town in the Shire of East Gippsland, Victoria, Australia. At the 2021 census, Paynesville had a population of 3,636. The town is …Paynesville is a town in the Shire of East Gippsland, Victoria, Australia. At the 2021 census, Paynesville had a population of 3,636. The town is located 293 kilometres by road east of the state capital, Melbourne. It is known as the boating capital of Victoria.