Australian Capital Territory

Australian Federal Territory, chiefly the site of Canberra (population 320,000), Australia's capital city, situated between its two largest and rival cities, Melbourne and Sydney.

When the constitution for the Commonwealth of Australia was being negotiated between the colonies, Melbourne and Sydney each demanded that they become the capital. As a compromise, it was agreed that the capital would initially be Melbourne, until a new capital city could be built. This new capital city would be located in territory taken from New South Wales, and be 200 statute miles or more from Sydney. The present site was chosen and named Canberra in ???; the federal government moved there from Melbourne in the 1920s.

The Australian Capital Territory is wholly surrounded by New South Wales. For administrative purposes, the Australian Capital Territory also incorporates the [Jervis Bay Territory]? (being a naval base on the NSW near the town of Jervis Bay), and the uninhabited external territories.