Sydney (/ˈsɪdni/) is the state capital of New South Wales and the most populous city in Australia and Oceania. Located on Australia's east coast, the metropolis surrounds the world's largest natural harbour, and sprawls towards the Blue Mountains to the west. Residents of Sydney are known as "Sydneysiders". Sydney is the secondary official seat and secondary official residence of the Governor-General of Australia and the Prime Minister of Australia. Sydney's importance to Australia means that the federal government as a whole maintains a substantial presence in the city.
The Sydney area has been inhabited by indigenous Australians for at least 30,000 years. The first British settlers, led by Captain Arthur Phillip, arrived in 1788 to found Sydney as a penal colony, the first European settlement in Australia. Since convict transportation ended in the mid-19th century, the city has transformed from a colonial outpost into a major global cultural and economic centre. As at June 2016 Sydney's estimated population was 5,005,358. In the 2011 census, 34 percent of the population reported having been born overseas, representing many different nationalities and making Sydney one of the most multicultural cities in the world. There are more than 250 different languages spoken in Sydney and about one-third of residents speak a language other than English at home.
Despite being one of the most expensive cities in the world, the 2014 Mercer Quality of Living Survey ranks Sydney tenth in the world in terms of quality of living, making it one of the most livable cities. It is classified as an Alpha+ World City by the Globalization and World Cities Research Network, indicating its influence in the region and throughout the world.