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Melbourne was the site of the first successful settlement in the southeastern part of Australia. The settlement of the area was led by John Batman, a native-born Australian, or "currency lad", who was interested in opening up new pastureland in order to expand the colonies.

In 1835, Batman led a syndicate calling themselves the 'Port Phillip Association' to explore Port Phillip Bay, upon which Melbourne now stands, looking for suitable sites for a settlement. That year, he signed a 'treaty' with the Aborigines, giving him access to almost 250,000 hectares of land. Despite Governor Bourke declaring Batman's treaties invalid and issuing a proclamation warning off he and his syndicate as trespassers on crown land, the settlement of Melbourne remained and flourished.

It was logical for this, the first successful settlement in the south, and the largest city, to be declared e capital when Victoria separated from Ne South Wales in 1851.

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