Sydney instance of state capital
Colonial city (1841–1900)
The New South Wales Legislative Council was transformed into a semi-elected body in 1842. The town of Sydney was declared a city the same year, and a governing council established, elected on a restrictive property franchise.The discovery of gold in New South Wales and Victoria in 1851 initially caused some economic disruption as male workers moved to the goldfields. Melbourne soon overtook Sydney as Australia's largest city, leading to an enduring rivalry between the two cities. However, increased immigration from overseas and wealth from gold exports increased demand for housing, consumer goods, services and urban amenities. The New South Wales government also stimulated growth by investing heavily in railways, trams, roads, ports, telegraph, schools and urban services. The population of Sydney and its suburbs grew from 95,600 in 1861 to 386,900 in 1891. The city developed many of its characteristic features. The growing population packed into rows of terrace houses in narrow streets. New public buildings of sandstone abounded, including at the University of Sydney (1854–61), the Australian Museum (1858–66), the Town Hall (1868–88), and the General Post Office (1866–92). Elaborate coffee palaces and hotels were erected. Exotic plants such as jacarandas and frangipani were introduced in parks and gardens. Daylight bathing at Sydney's beaches was banned, but segregated bathing at designated ocean baths was popular.Drought, the winding down of public works and a financial crisis led to economic depression in Sydney throughout most of the 1890s. Meanwhile, the Sydney-based premier of New South Wales, George Reid, became a key figure in the process of federation.State capital (1901–present)
When the six colonies federated on 1 January 1901, Sydney became the capital of the State of New South Wales. The spread of bubonic plague in 1900 prompted the new state government to modernise the wharves and demolish inner-city slums. The outbreak of the First World War in 1914 saw more Sydney males volunteer for the armed forces than the Commonwealth authorities could process, and helped reduce unemployment in the city. Those returning from the war in 1918 were promised "homes fit for heroes" in new suburbs such as Daceyville and Matraville. "Garden suburbs" and mixed industrial and residential developments also grew along the rail and tram corridors. The population reached one million in 1926, after Sydney had regained its position as the most populous city in Australia. The government created jobs with massive public projects such as the electrification of the Sydney rail network and building the Sydney Harbour Bridge.
Sydney was more severely affected by the Great Depression of the 1930s than regional NSW or Melbourne. New building almost came to a standstill, and by 1933 the unemployment rate for male workers was 28 per cent, but over 40 per cent in working class areas such as Alexandria and Redfern. Many families were evicted from their homes and shanty towns grew along coastal Sydney and Botany Bay, the largest being "Happy Valley" at La Perouse. The Depression also exacerbated political divisions. In March 1932, when populist Labor premier Jack Lang attempted to open the Sydney Harbour Bridge he was upstaged by Francis de Groot of the far-right New Guard, who slashed the ribbon with a sabre.In January 1938, Sydney celebrated the Empire Games and the sesquicentenary of European settlement in Australia. One journalist wrote, "Golden beaches. Sun tanned men and maidens...Red-roofed villas terraced above the blue waters of the harbour...Even Melbourne seems like some grey and stately city of Northern Europe compared with Sydney's sub-tropical splendours." Meanwhile, a congress of the "Aborigines of Australia", declared 26 January "A Day of Mourning" for "the whiteman's seizure of our country."With the outbreak of war in 1939, Sydney experienced a surge in industrial development to meet the needs of a wartime economy. Unemployment virtually disappeared and women moved into jobs previously male preserves. Sydney was attacked by Japanese submarines in May and June 1942 with 21 lives lost. Households throughout the city built air raid shelters and performed drills.A post-war immigration and baby boom saw a rapid increase in Sydney's population and the spread of low-density housing in suburbs throughout the Cumberland Plain. Immigrants—mostly from Britain and continental Europe—and their children accounted for over three-quarters of Sydney's population growth between 1947 and 1971. The newly created Cumberland County Council oversighted low-density residential developments, the largest at Green Valley and Mount Druitt. Older residential centres such as Parramatta, Bankstown and Liverpool became suburbs of the metropolis. Manufacturing, protected by high tariffs, employed over a third of the workforce from 1945 to the 1960s. However, as the long post-war economic boom progressed, retail and other service industries became the main source of new jobs.An estimated one million onlookers, most of the city's population, watched as Queen Elizabeth II landed in 1954 at Farm Cove where Captain Phillip had raised the Union Jack 165 years earlier, commencing her Australian Royal Tour. It was the first time a reigning monarch stepped onto Australian soil.Increasing high rise development in Sydney and the expansion of suburbs beyond the "green belt" envisaged by the planners of the 1950s resulted in community protests. In the early 1970s, trade unions and resident action groups imposed green bans on development projects in historic areas such as The Rocks. Federal, State and local governments subsequently introduced a range of heritage and environmental legislation. The Sydney Opera House was also controversial for its cost and disputes between architect Jørn Utzon and government officials. However, soon after it opened in 1973 it became a major tourist attraction and symbol of the city. The progressive reduction in tariff protection from 1974 began the transformation of Sydney from a manufacturing centre focused on the domestic market to a "world city" providing financial, commercial, cultural and educational services to local residents and Australian and overseas markets. From the 1980s, overseas immigration to Sydney grew rapidly, with Asia, the Middle East and Africa becoming major sources of immigrants. By 2021, the population of Sydney was over 5.2 million, with 40% of the population born overseas. China and India overtook England as the largest source countries for overseas-born residents.
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