Although the consequences of residential segregation are well documented, few studies to date have examined patterns of residential segregation at the local level in Australia. While available research indicates relatively low levels of residential segregation in Australia compared to other contexts, the traditional measures of segregation commonly utilised tend to be aspatial and global in nature and, as such, offer limited insight into local segregation trends. Considering these shortcomings, this paper employs two highly spatialised yet under-utilised local segregation measures—Location Quotients and Local Moran’s I. Using these measures, this paper explores how various immigrant groups are spatially distributed across two Australian cities with differing immigration histories—Sydney an established immigrant gateway and Brisbane a relatively new immigrant destination. Additionally, this article examines whether or not immigrant neighbourhoods in each city are co-located or isolated. Contrary to expectations that Australian neighbourhoods are multicultural, these findings demonstrate clear differences in the neighbourhoods where immigrant groups settle.