Claim: Perth is a capital city in Australia.

Perth is the capital and largest city of the Australian state of Western Australia . It is the fourth-most populous city in Australia , with an estimated population of 2.06 million living in Greater Perth . Perth is part of the South West Land Division of Western Australia , with the majority of the metropolitan area located on the Swan Coastal Plain , a narrow strip between the Indian Ocean and the Darling Scarp . The first areas settled were on the Swan River , with the city 's central business district and port -LRB- Fremantle -RRB- both located on its shores .   Perth was founded by Captain James Stirling in 1829 as the administrative centre of the Swan River Colony . It gained city status -LRB- currently vested in the smaller City of Perth -RRB- in 1856 , and was promoted to the status of a Lord Mayorality in 1929 . The city is named after Perth , Scotland , due to the influence of Sir George Murray , Member of Parliament for Perthshire and Secretary of State for War and the Colonies . The city 's population increased substantially as a result of the Western Australian gold rushes in the late 19th century . During Australia 's involvement in World War II , Fremantle served as a base for submarines operating in the Pacific Theatre , and a US Navy Catalina flying boat fleet was based at Matilda Bay . An influx of immigrants after the war , predominantly from Britain , Greece , Italy and Yugoslavia , led to rapid population growth . This was followed by a surge in economic activity flowing from several mining booms in the late 20th and early 21st centuries that saw Perth become the regional headquarters for a number of large mining operations located around the state .   As part of Perth 's role as the capital of Western Australia , the state 's Parliament and Supreme Court are located within the city , as is Government House , the residence of the Governor of Western Australia . Perth came seventh in the Economist Intelligence Unit 's August 2016 list of the world 's most liveable cities , and was classified by the Globalization and World Cities Research Network in 2010 as a world city .   Perth is divided into 30 local government areas and 250 suburbs , stretching from Two Rocks in the north to Singleton in the south , and east inland to The Lake . Outside of the main CBD , important urban centres within Perth include Armadale , Fremantle , Joondalup , Midland , and Rockingham . Most of those were originally established as separate settlements , and retained a distinct identity after being subsumed into the wider metropolitan area . Mandurah , Western Australia 's second-largest city , has in recent years formed a conurbation with Perth along the coast , though for most purposes it is still considered a separate city .