By this time, Kororareka was an important mercantile centre and served as a vital resupply port for whaling and sealing operations. When the Colony of New Zealand was founded in that year, Hobson was reluctant to choose Kororareka as his capital, due to its bad reputation. Instead he purchased land at Okiato, situated five kilometres to the south, and renamed it Russell in honour of the Secretary of State for the Colonies, Lord John Russell. Captain Hobson soon decided that the move to the Okiato site was a mistake, and Auckland was selected as the new capital not long after.