 Dalgety was chosen by the federal parliament and it passed the "Seat of Government Act 1904" confirming Dalgety as the site of the nation's capital.However, the New South Wales government refused to cede the required territory as they did not accept the site.In 1906, the New South Wales Government finally agreed to cede sufficient land provided that it was in the Yass-Canberra region as this site was closer to Sydney.