Murmur to graduate in NSW town (5)

I believe the answer is:

cooma

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'nsw town' is the definition.
I know nothing about this answer so I can't tell whether it can be defined by this definition.

'murmur to graduate' is the wordplay.
'murmur' becomes 'coo' (cooing is a kind of murmuring).
'to graduate' becomes 'ma' (abbreviation for Master of Arts).
'coo'+'ma'='COOMA'

'in' is the link.

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I've seen this clue in the Sydney Morning Herald.

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