The Melbourne Metro project has evolved from the Victorian Transport Plan. MM1 is the second major phase of the proposed separation of Melbourne's radial railway system, creating a line that will operate independently across the metropolitan region. The central section will run beneath the inner suburbs and the central city. The initial project comprises nearly 8 km of twin bore tunnels, three cavern stations and two cut and cover stations, as well as a dive structure and connections with the existing rail system. This paper describes the development of the geological model, a modification of the rock mass classification system derived during the EastLink project and the influence of the geology on the design of the tunnels and stations for the Department of Transport's business case.The majority of the tunnelling will be in the siltstone and sandstone bedrock. This material has been extensively folded, sheared and intersected by igneous intrusions. A revised rock mass classification system has been developed for the Melbourne Formation to assist in identifying the important engineering properties of the rock and to rationalise the support types required.The Metro's tunnel alignment crosses the Yarra Delta deposits in the lower reaches of the Moonee Ponds Creek and again at the Yarra itself near Princes Bridge. These deposits vary in extent and thickness over very short distances. The investigation of these materials has been carried out using conventional drilling techniques in conjunction with sonic drilling methods.Over the central section of the Metro, the positions of the new station are determined largely by transport planning requirements and urban development opportunities. However, the stations, and the tunnels, have been the subject of studies, optimising exercises, and selection processes to arrive at the concept design. This paper describes the influence of the varied geology on the development of the design, and the identification and management of the risks in tunnelling under the centre of Melbourne.