What is now known as Melbourne began in the area of the Yarra River and Port Phillips, founded in 1835 by the British settlers, who originated from Launceston, Tasmania. When they first arrived, they quickly discovered that it was already inhabited by aborigines, the Kulin tribe. After a short time a deal was struck with 8 of the of the Wurundjen tribe for 600,000 square acres of land (2,400 Km squared).

In 1836, Governor Bourke declared the city the official capitol of the Port Phillip District of New South Wales. And began the plan for a city layout called the Hoddle Grid, named after it's creator, Robert Hoddle, the following year. During the same year the official name of Melbourne was conceived. On June 25, 1847, the settlement was officially declared a city by Queen Victoria. Four years later, the state of Victoria was established with Melbourne being chosen as it's capitol.

Gold!

In the early 1850's, gold was discovered in Victoria, which led to a boom in popularity and an expected gold rush. Because of the gold rush, Melbourne was able flourish into a center of financial success. This growth lead to Melbourne becoming one of the largest cities in the British empire and an icon for economic growth. The demand for banks forced the restructuring of the foundation of Australia's financial practice, eventually leading to Australia's first stock exchange. For those seeking riches, Melbourne was the place to be and it quickly became a leader of financial service industries in the hemisphere.

A Wonderful City

Because of the thriving economy, the city also became the epicenter for beauty and natural architecture, gardens, streets lined with trees and parks as well as fantastic Victorian-style buildings. During his visit in 1885, George Augustus Henry Sala was so overwhelmed by the beauty of this city that he could only say “Magnificent Melbourne” which became a common saying used to this very day. During this period Melbourne was also the primary port for importing and exporting for the region.

During the early times of Melbourne's development, following the gold rush, Melbourne became Australia's largest city, home to the center of Pacific development. Melbourne was able to maintain that title until the early 20th century when Sydney became the most populous city in Australia.

The world depression

In 1891, Due to the world depression,Melbourne was cast into it's own economic depression that lasted many years. Although the impact this depression made on the economy was incredible, The government was able to sustain at least small level of annual growth during this period well into the 20th century.

Melbourne as a capitol

Upon Australia's independence in 1901, Melbourne was chosen as a temporary location for Australia's new government. This was yet another advantage that Melbourne needed during this period, however, it only lasted until 1927, when the seat of government was moved to the current capitol city of Canberra.

WWII

Melbourne, during the second world war, became a thriving industrial center of wartime production for allied forces in the pacific. General Douglas MacArthur established this city as a key resource for all allied operations in this hemisphere. This attention helped Melbourne to develop and become Australia's leading manufacturing city.

Recovery and Resilience

Because of the war, Melbourne was able to develop an incredible city-wide infrastructure that helped it to again gain a lead in country as the top business and financial city in Australia. This lasted until the late 70' when Sydney, once again, pulled ahead in that area.

Victorian Depression

During the late 80's and 90's, the state of Victoria suffered an economic hardship. It was quickly and expertly rescued out of crisis by the newly elected government in 1992. The new government began a hard driven campaign to recover this cities identity as the leader of Australia's multiple industry sectors. The idea was good, but it took many years longer to change the direction the economy was heading in.

A New Plan

The government quickly began a plan to reverse the devaluation of Australia's currency. It was quickly decided to focus on the tourism industry and as put together large projects such as the Crown Casino, Melbourne Museum and Federation Square to promote tourism. This strategy worked well and allowed this incredible city to recover from this slump. Since 1997, Melbourne has sustained a steady growth in all areas of its economy.