Flying fox habitats. Flying foxes are large bats, which are found along the eastern coast of Australia, and along many areas in the tropical north. Grey headed flying foxes are the main variety found near Sydney in New south wales and in Melbourne. Grey headed flying foxes live in a variety of habitas including rainforests,woodlands and swamps. The warmer parts of the year you can find them occupying cool and wet gullies in large groups, movements of this bat are infuenced by the avaliability of food and warter. Although recorded in small numbers sporadicly thouout the 20th century, it was not until the 1980's that grey headed flying foxes routinlely visatid Melborne, with a permanent camp since the 1990's at Yarra bend near the city's river.