pacific ocean islands Coral Sea Islands Territory A Territory of Australia which includes a group of small and mostly uninhabited tropical islands and reefs in the Coral Sea, northeast of Queensland, Australia. The only inhabited island is Willis Island. The territory covers 780,000 km2, extending east and south from the outer edge of the Great Barrier Reef, and including Heralds Beacon Island, Osprey Reef, the Willis Group, and fifteen other reef/island groups. Coral Sea Islands Territory A Territory of Australia which includes a group of small and mostly uninhabited tropical islands and reefs in the Coral Sea, northeast of Queensland, Australia. The only inhabited island is Willis Island. The territory covers 780,000 km2, extending east and south from the outer edge of the Great Barrier Reef, and including Heralds Beacon Island, Osprey Reef, the Willis Group, and fifteen other reef/island groups.