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Being located inland was the logical outcome of discussions regarding the location of Australia's national capital city.
Australia's two largest cities, Sydney and Melbourne, 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. Farming land was taken up for this purpose.
Section 125 of the Constitution of Australia provided that:
"The seat of Government of the Commonwealth shall be determined by the Parliament, and shall be within territory which shall have been granted to or acquired by the Commonwealth, and shall be vested in and belong to the Commonwealth, and shall be in the State of New South Wales, and be distant not less than one hundred miles from Sydney.
Such territory shall contain an area of not less than one hundred square miles, and such portion thereof as shall consist of Crown lands shall be granted to the Commonwealth without any payment therefore. The Parliament shall sit at Melbourne until it meets at the seat of Government."
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