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Hobart ( (listen)) is the capital and most populous city of the Australian island state of Tasmania. With a population of approximately 225,000 (over 40% of Tasmania's population), it is the second least populated Australian state capital city. Founded in 1804 as a British penal colony, Hobart, formerly known as Hobart Town or Hobarton, is Australia's second oldest capital city after Sydney, New South Wales. Prior to British settlement, the Hobart area had been occupied for possibly as long as 35,000 years, by the semi-nomadic Mouheneener tribe, a sub-group of the Nuennone, or South-East tribe. The descendants of these Aboriginal Tasmanians often refer to themselves as 'Palawa'.
Since its foundation as a colonial outpost, the city has expanded from the mouth of Sullivans Cove in a generally north-south direction along both banks of the Derwent River, from 22 km inland from the estuary at Storm Bay to the point where the river reverts to fresh water at Bridgewater. Penal transportation ended in the 1850s, after which the city experienced periods of growth and decline. The early 20th century saw an economic boom on the back of mining, agriculture and other primary industries, and the loss of men who served in the world wars was counteracted by an influx of immigration. Despite the rise in migration from Asia and other non-English speaking parts of the world, Hobart's population remains predominantly ethnically Anglo-Celtic, and has the highest percentage of Australian-born residents among the Australian capital cities.In June 2016, the estimated greater area population was 224,462. The city is located in the state's south-east on the estuary of the Derwent River, making it the most southern of Australia's capital cities.