Canberra is the capital city of Australia. With an estimated population of 400,000, it is Australia’s largest inland city and the eighth-largest city overall. The city is located at the northern end of the Australian Capital Territory. The site of Canberra was selected for the location of the nation’s capital in 1908 as a compromise between rivals Sydney and Melbourne, Australia’s two largest cities. European exploration and settlement started in the Canberra area as early as the 1820s.