Clarence, city in southeastern Australia, in the state of Tasmania near the capital Hobart. Clarence lies on the eastern shore of the Derwent River, near the river's entrance into Storm Bay on the Tasman Sea. Although a city in its own right, Clarence is dominated by the industries and services of neighboring Hobart and has become a commuter city for the Tasmanian capital. There is some light industry. The Derwent River estuary is a busy port and has a large natural deepwater harbor. Population (1991) 46,280.