History of Canberra Rush at the time, Melbourne was Australia's largest city and a potential place for the capital. However Sydney was Australia's oldest city, and so also had a justifiable claim to host the new nation's Federal polity. Western Australia, South Australia and Victoria, Melbourne's state of location —supported Melbourne. However, New South Wales (the largest colony) and its neighbouring northern state, Queensland, favoured Sydney. Perhaps one or another of the two colonial capitals might have eventually been acceptable to the smaller states, but the Sydney–Melbourne rivalry was such that neither city would ever agree to the other one becoming the capital.
Capital city meaning "head". In several English-speaking states, the terms county town and county seat are also used in lower subdivisions. In some unitary states, subnational capitals may be known as "administrative centres". The capital is often the largest city of its constituent, though not always. Historically, the major economic centre of a state or region often becomes the focal point of political power, and becomes a capital through conquest or federation. (The modern capital city has, however, not always existed: in medieval Western Europe, an itinerant (wandering) government was common.) Examples are Ancient Babylon, Abbasid Baghdad, Ancient Athens, Rome, Constantinople, Chang'an,