The municipality was placed 85th on the BankWest Quality Of Life index, which ranked Australia's 590 local government areas by comparing a range of factors including employment, health, education, crime and volunteering rates.

The study revealed 81 per cent of Wyndham residents were in good health, while 79 per cent were home owners compared with the national average of 70 per cent.

Employment in Wyndham sits at 95 per cent, with the average taxable income at $49,149, and 78 per cent of 16-year-olds enrolled in secondary school.

However, only 14 per cent of the community are volunteers, 6 per cent down on the nationwide figure.

Wyndham was the highest ranked municipality in the western suburbs, well ahead of Melton at 122, Hobsons Bay at 163, Moonee Valley at 191, Brimbank at 381 and Maribyrnong at 503.

Wyndham Tourism Association chairman George Tomkins said he was delighted by the result.

"We strongly believe that the mix of country, coast and suburban areas with plenty to see and enjoy was a major contributing factor," he said.

"There are a diverse range of fabulous tourism attractions in Wyndham which appeal to local residents and visitors alike, from bird watching at the Point Cook Coastal Park to exploring military heritage at the B24-Liberator Restoration Project."

Rose Grange Residents Association acting president Andrew Elsbury said low-density housing, easy access to the Melbourne CBD and separation of heavy industrial and residential zones would have been major influences in Wyndham's favour.

Mr Elsbury said that despite Wyndham's ranking as the "best in the west", there was still room for improvement.

"We still have issues like roads, police numbers and public transport shortages, but Wyndham is a good place to live and to raise a family."

Land prices were attractive to first home buyers and young families and the proximity to the city made it convenient for work, he said.

However, he believed the health sector had not kept pace with Wyndham's development with a shortage of GPs. Crime was also a major concern, as was "overworked" and "under-resourced" police.

Wyndham Mayor Kim McAliney said attractions such as Werribee Park Mansion and Werribee Open Range Zoo combined with cheap housing and a strong sense of community were among the municipality's strengths.