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The decision to create a new city as the capital of Australia was influenced by several historical events, primarily the rivalry between Sydney and Melbourne, the two largest cities at the time. The 1890s Federation movement sought to unify the Australian colonies, and it was agreed that a neutral location should be established to serve as the national capital, preventing favoritism towards either city. The site chosen was in the Australian Capital Territory, which was officially established in 1911, with the city of Canberra being designed and built to serve as the capital. The decision also reflected a desire to promote development in the interior of the continent.

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