Where is the best place to live in Dubbo for Young Families?

South Dubbo is quiet, lovely heritage homes. Close to CBD.

Be warned. Do your homework. Public Housing can easily buy the house next door to you and you will find the value of your own house dropping by $100,000. This is a serious problem in Dubbo.

South Dubbo is very popular, Macquarie Street Tamworth Street Brisbane St and Darling St have some lovely homes. Central Dubbo has some great street also with Cadell Street Bourke Street and Bultje Street all great.
Grangewood is also a sought after location.

How many suburbs are there in dubbo

This is a very personal question as this depends on you and your lifestyle. I live in Central Dubbo and this is ideal for me as my children go to school in the area and I also work close by, however this might not be ideal for somebody who spends most of their time in another area of town. Just like any town, Dubbo has good and not so desired sections, but overall we have a good community so stick with the area that fits your lifestyle the best and trust your gut feeling.

If you're after a public school, here's a great way to see which one different addresses are zoned for: https://my.education.nsw.gov.au/school-finder
As ThomasB mentioned, Dubbo (like many places) can have some newer homes picked up by social housing. If you're worried about this and would like to chat about any properties before making a decision, I love talking to people who are moving here and am honest about where I would and wouldn't live myself - 0423 321 222.

There aren't specific suburbs in Dubbo, but rather sections. I'd recommend Delroy Park in the West. My partner would recommend Dubbo South, closer to the centre of town, and cheaper.