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The first settlers to the Victorian region were Lieutenant David Collins and a group of officers, convicts and free settlers who, in 1803, first landed where Sorrento now stands. The colony was not a success, and within a few months Collins had transferred the entire settlement across Bass Strait to Van Diemen's Land, and established Hobart on the Derwent River.

The next settler in the district was John Batman. On 6 June 1835, Batman signed a 'treaty' with the Aborigines, giving him free access to almost 250,000 hectares of land. In August that year, Governor Bourke declared Batman's treaties invalid, and issued a proclamation warning off him and his syndicate as trespassers on crown land. Despite the attempts at government intervention, the foundling settlement of Melbourne remained, and flourished. The new township was surveyed and named as Melbourne on 3 March 1837, in honour of the British Prime Minister, Lord Melbourne.

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