Canberra is the capital of Australia. With a population of approximately 325,000, it is Australia’s largest inland city. Before European settlement began in the 1820s, the area that is now Canberra was inhabited by native aboriginals. Canberra became Australia’s capital in 1908 as a result of a compromise between the cities of Sydney and Melbourne both contending for this title. Canberra is situated between those two cities.