It seems like the cast and crew of X-Men Origins: Wolverine may soon be filming on Cockatoo Island in Sydney Harbour. According to a scooper at Moviehole.net, there has been work on prepping locations on the island for filming:

Just a bit of info re X-Men Origins: Wolverine. I work on Cockatoo Island on Sydney Harbour. For your information, they are filming there over the next few months. Currently building sets etc. Lots of night shooting coming up apparentely. At this stage due to finish there in May.

Cockatoo Island is a former imperial prison, industrial school, reformatory and gaol, that was later one of Australia's biggest shipyards, and is now a premiere tourist destination for Australia.

X-Men Origins: Wolverine explores Wolverine's early days, before joining the X-Men. The film will cover Logan's early life, and his involvement with the mysterious Weapon X program. The film stars Hugh Jackman, Liev Shrieber, Danny Huston, Ryan Reynolds, Taylor Kitsch, will.i.am, Daniel Henney, Dominic Monaghan and Lynn Collins. X-Men Origins: Wolverine is due to arrive in theatres in 2009.