Sydney is the largest and most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. Inhabitants of Sydney are called Sydneysiders comprising a cosmopolitan and international population of people from numerous places around the world. The site of the first British colony in Australia Sydney was established in 1788 at Sydney Cove by Arthur Phillip commodore of the First Fleet as a penal colony.