History of Sydney
With the inauguration of the Commonwealth of Australia on 1 January 1901, Sydney ceased to be a colonial capital and became the capital of the Australian state of New South Wales. With industrialisation, Sydney expanded rapidly, and by the early 20th century it had a population well in excess of one million.
Sydney Cove
Sydney Cove was named after the British Home Secretary, the 1st Baron Sydney (who was later created The 1st Viscount Sydney in 1789). It was the site chosen by Captain Arthur Phillip, RN between 21 and 23 January 1788 for the British penal settlement which is now the city of Sydney, and where possession of New South Wales was formally declared on 26 January (now commemorated as Australia Day). Today, the exact site where the flag was planted is unmarked, beneath buildings of Circular Quay.