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Canberra is not named the Australian Capital Territory. Canberra is Australia's federal capital, and it lies within the territory of the ACT, or Australian Capital Territory.

The NSW government ceded land for the new Australian Capital Territory to the Commonwealth Government, and the Australian Capital Territory was founded on 1 January 1911. Australia's capital could not be either of the two largest cities, Sydney and Melbourne, as the two cities had been rivals since before the goldrush days. It was therefore decided that the nation's capital should be situated between the two cities. A location was chosen which was 248km from Sydney and 483km from Melbourne, within easy access of both cities.

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Because Australia's two largest cities, Sydney and Melbourne, had been rivals since before the goldrush days, it was decided that the nation's capital should be situated between the two cities. The Limestone Plains area was chosen, which was 248km from Sydney and 483km from Melbourne. This was shortly after Federation in 1901.

On 1 January 1911, the Federal Capital Territory was established as an area of 2 360 square kilometres in the Yass-Canberra district.

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Q: Why is Canberra named the Australian capital territory?
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