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He spent a short time collecting food and conducting scientific observations before continuing further north along the east coast of Australia and claiming the new land he had discovered for Britain.
Prior to the arrival of the British there were 4, to 8, native people in Sydney from as many as 29 different clans.
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Its literal meaning is "from this place". The earliest Europeans to visit the area noted that the indigenous people were conducting activities such as camping and fishing, using trees for bark and food, collecting shells, and cooking fish. Britain —before that, England —and Ireland had for a long time been sending their convicts across the Atlantic to the American colonies. That trade was ended with the Declaration of Independence by the United States in Britain decided in to found a new penal outpost in the territory discovered by Cook some 16 years earlier.
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He travelled a short way further north and arrived at Port Jackson on 26 January Phillip described Sydney Cove as being "without exception the finest harbour in the world". Lieutenant William Dawes produced a town plan in but it was ignored by the colony's leaders. Sydney's layout today reflects this lack of planning. The food situation reached crisis point in Early efforts at agriculture were fraught and supplies from overseas were scarce. From on, however, the more regular arrival of ships and the beginnings of trade lessened the feeling of isolation and improved supplies.
Maps from this time show no prison buildings; the punishment for convicts was transportation rather than incarceration, but serious offences were penalised by flogging and hanging. Poor equipment and unfamiliar soils and climate continued to hamper the expansion of farming from Farm Cove to Parramatta and Toongabbiebut a building programme, assisted by convict labour, advanced steadily.
It is estimated that half of the native people in Sydney died during the smallpox epidemic of Phillip and several of his officers—most notably Watkin Tench —left behind journals and accounts of which tell of immense hardships during the first years of settlement. Parramatta Road was opened inwhich is one of Sydney's oldest roads and Australia's first highway between two cities — Sydney CBD and Parramatta.
These people pioneered Sydney's private sector economy and were later joined by soldiers whose military service had expired, and later still by free settlers who began arriving from Britain. Governor Phillip departed the colony for England on 11 Decemberwith the new settlement having survived near starvation and immense isolation for four years.
He raided farms until Governor Macquarie dispatched troops from the British Army 46th Regiment in and ended the conflict by killing 14 Indigenous Australians in a raid on their campsite. The first and only major convict uprising in Australian history suppressed under martial lawthe rebellion ended in a battle fought between convicts and the colonial forces of Australia at Rouse Hill.
Conflicts arose between the governors and the officers of the Rum Corps, many of which were land owners such as John Macarthur. In the early years, drought and disease caused widespread problems, but the situation soon improved.
The military colonial government was reliant on the army, the New South Wales Corps. During this 'land boom', Melbourne reputedly became the richest city in the world,  and the largest after London in the British Empire. In a telephone exchange was established and in the same year the foundations of St Paul'swere laid; in electric light was installed in the Eastern Market, and in the following year a generating station capable of supplying 2, incandescent lamps was in operation.
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Federal Coffee Palaceone of many grand hotels erected during the boom Invisiting English journalist George Augustus Henry Sala coined the phrase "Marvellous Melbourne", which stuck long into the twentieth century and is still used today by Melburnians.
A brash boosterism that had typified Melbourne during this time ended in the early s with a severe economic depression, sending the local finance and property industries into a period of chaos   during which 16 small "land banks" and building societies collapsed, and limited companies went into liquidation.
The Melbourne financial crisis was a contributing factor in the Australian economic depression of the s and the Australian banking crisis of The effects of the depression on the city were profound, with virtually no new construction until the late s. At the time of Australia's federation on 1 JanuaryMelbourne became the seat of government of the federation.
The first federal parliament was convened on 9 May in the Royal Exhibition Building, subsequently moving to the Victorian Parliament House where it was located untilwhen it was moved to Canberra. The Governor-General of Australia resided at Government House in Melbourne until and many major national institutions remained in Melbourne well into the twentieth century. Suburban expansion then intensified, served by new indoor malls beginning with Chadstone Shopping Centre. Many of the larger suburban mansions from the boom era were also either demolished or subdivided.
To counter the trend towards low-density suburban residential growth, the government began a series of controversial public housing projects in the inner city by the Housing Commission of Victoriawhich resulted in demolition of many neighbourhoods and a proliferation of high-rise towers. The Bolte government sought to rapidly accelerate the modernisation of Melbourne.
Major road projects including the remodelling of St Kilda Junctionthe widening of Hoddle Street and then the extensive Melbourne Transportation Plan changed the face of the city into a car-dominated environment.
Nauru 's then booming economy resulted in several ambitious investments in Melbourne, such as Nauru House. Inthe newly elected Kennett government began a campaign to revive the economy with an aggressive development campaign of public works coupled with the promotion of the city as a tourist destination with a focus on major events and sports tourism.
Other strategies included the privatisation of some of Melbourne's services, including power and public transport, and a reduction in funding to public services such as health, education and public transport infrastructure.
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There has been substantial international investment in the city's industries and property market. Major inner-city urban renewal has occurred in areas such as SouthbankPort MelbourneMelbourne Docklands and more recently, South Wharf. According to the Australian Bureau of StatisticsMelbourne sustained the highest population increase and economic growth rate of any Australian capital city in the three years ended June Fromthe growth of the city extended into "green wedges" and beyond the city's urban growth boundary.
Predictions of the city's population reaching 5 million people pushed the state government to review the growth boundary in as part of its Melbourne Five Million strategy.
At this time, more new jobs were created in Melbourne than any other Australian city—almost as many as the next two fastest growing cities, Brisbane and Perth, combined,  and Melbourne's property market remained highly priced,  resulting in historically high property prices and widespread rent increases. This section needs additional citations for verification.
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