When Governor Bourke visited Port Phillip in March 1837 he praised Lonsdale's ability, zeal and discretion, confirmed Lonsdale's choice of a site for the new town and named it Melbourne. Lonsdale chose the Yarra River site for its access to abundant fresh water, which the Williamstown site lacked. The foundations of the new settlement having been laid Lonsdale conscientiously followed instructions, referring all decisions he made to his superiors in Sydney. Lonsdale supervised the first land sale in June 1837. and as there were no Banks in the Port Phillip settlement of Melbourne, he personally used his own funds in a Sydney bank to pay the government what was due to them. In this way he allowed purchasers to retain cash in the settlement which would have been otherwise left without any 'money in hand' needed for their further development of the settlement. Lonsdale, if it was within his power was there to make it happen, and at the same time uphold the law.