The Purple-crowned Fairy-wren is found near water and thick vegetation in Northern and Western Australia. It usually resides in canegrass, Pandanus (with high stem density), Chionachne cyathopoda or tall river grass that are very dense. One subspecies (Malurus coronatus coronatus) may also reside in Xanthium strumarium. This species does not usually travel more than 10 m away from this type of habitat and does not occur in areas where river grass is not present. When this area floods, Purple-crowned Fairy-wrens use taller trees such as Eucalyptus to keep them safe from the water (Rowley, 1993).
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