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There are many islands directly north of Cape York Peninsula and, it would depend on which part of the tip of Cape York Peninsula you are looking from and, what you define as an island.

The two nearest islands from the sign-posted "tip" of Cape York Peninsula (the northern most point of the Australian mainland) would be York Island followed by Eborac Island, both within swimming distance if you can beat the sharks, the crocodiles and the tide, but these are little more than rocky outcrops.

The nearest relatively large and inhabited islands would be Prince of Wales Island, then Horn Island, then the most well known island would be Thursday Island, a little further on again.

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